The actions of numerous institutional investors to sell stock index futures instead of selling stocks to prepare for a market decline would likely cause the index futures price to be

Question

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When numerous institutional investors sell stock index futures to prepare for a market decline, it increases the supply of these futures, leading to a decrease in their price. Therefore, the index futures price would likely be below the prevailing stock prices due to this selling pressure.

The Actions of Numerous Institutional Investors to Sell Stock Index