If an individual expected securities prices to fall,that investor could
1)buy put options
2)sell a stock index futures contract
3)sell stock short

Question

Quizplus · Accepted Answer

All of these choices are strategies that can be used to profit from a decline in securities prices. Buying put options allows the investor to sell at a predetermined price, selling a stock index futures contract bets on a decline in the index, and selling stock short involves selling borrowed stock with the intention of buying it back at a lower price.

If an Individual Expected Securities Prices to Fall,that Investor Could