Investors can use stock index futures to speculate on stock prices, control a portfolio's price risk exposure, hedge against adverse stock price movements, construct indexed portfolios, engage in index arbitrage, and create a synthetic put option.
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Q22: Interest rate options or options on interest
Q23: A money manager can use both stock
Q24: Market participants can obtain downside protection using
Q25: The difference between the cash price and
Q26: A protective put buying strategy can be
Q28: Because futures are highly leveraged and transactions
Q29: By taking an appropriate position in a
Q30: In regards to hedging, which of the
Q31: Buying a futures contract decreases a market
Q32: Market participants can use interest rate futures
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