The primary use of stock index futures by the portfolio manager is:
A)to offset the loss on the portfolio in a declining market.
B)to profit from major market movements.
C)to increase the profit potential on the portfolio.
D)All of the above

Question

Quizplus · Accepted Answer

The primary uses of stock index futures by the portfolio manager are: to offset the loss on the portfolio in a declining market, to profit from major market movement, and to increase the profit potential on the portfolio.

The Primary Use of Stock Index Futures by the Portfolio