A money manager can use both stock index futures and interest rate futures to more efficiently allocate funds between the stock market and the bond market.

Question

Quizplus · Accepted Answer

By using stock index futures, the money manager can gain exposure to the stock market without having to purchase individual stocks. Similarly, by using interest rate futures, they can gain exposure to the bond market without having to purchase individual bonds. This allows for a more efficient allocation of funds between the two markets.

A Money Manager Can Use Both Stock Index Futures and Interest