Investors can use the cash or futures market to alter their risk exposure, which requires them to consider which of the following factors?

Question

Quizplus · Accepted Answer

Investors need to consider liquidity, transaction costs, taxes, and the leveraging aspect of futures when altering their risk exposure through the cash or futures market. Each factor can significantly impact the effectiveness and cost of their investment strategies.

Investors Can Use the Cash or Futures Market to Alter