A potential downturn in the share market can be overcome by:
A. Taking a buy position on a contract for SPI futures and then closing out the contract if the market begins to rise.
B. Taking out a contract SPI futures and agreeing to a sell position. The contract should be closed out if the market begins to rise.
C. Entering into a forward exchange rate contract and specifying a specific date to purchase currency at a set rate.
D. Hedging by agreeing to deliver goods at a specific date in the future at a predetermined price.
E. None of the given answers.
Correct Answer:
Verified
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