A potential downturn in the share market can be overcome by:

Question

Quizplus · Accepted Answer

Taking out a contract for FTSE 100 IDX futures with a sell position allows the investor to profit from a potential downturn in the share market. If the market does indeed fall, the investor can close out the contract at a higher price than the market price, thereby making a profit. Option A could result in losses if the market does not begin to rise as expected. Option C and D are not directly related to the share market and may not necessarily provide protection against a downturn.

A Potential Downturn in the Share Market Can Be Overcome