Which of the following represents the most popular stock-index futures position that is used to benefit from a stock market decline?
A) A short position in the S&P 500 contract
B) A long position in the S&P 500 contract
C) A short position in the DJIA contract
D) A long position in the DJIA contract

Question

Quizplus · Accepted Answer

Taking a short position in the S&P 500 contract is a common strategy to profit from a decline in the stock market, as it involves selling the contract with the expectation of buying it back at a lower price.

Which of the Following Represents the Most Popular Stock-Index Futures