How many contracts should you buy or sell to hedge your position?
A)sell 1.714
B)buy 1.714
C)sell 4.236
D)buy 4.236
E)sell 11.235

Name: How many contracts should you buy or sell to hedge your position? A)sell 1.714 B)buy 1.714 C)sell 4.236 D)buy 4.236 E)sell 11.235
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Question

Quizplus · Accepted Answer

To hedge a position, you typically sell futures contracts. The choice "sell 1.714" indicates the number of contracts to sell, which is the correct action for hedging.

How Many Contracts Should You Buy or Sell to Hedge