The manager of a diversified equity portfolio can use SPI futures to maintain the portfolio's value even when share prices are falling.
Correct Answer:
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Q43: Futures and forward contracts are both:
A)standardised
B)agreements to
Q44: Which of the following is NOT an
Q45: A bank can hedge an exposure to
Q46: A borrower can hedge against adverse movements
Q47: A speculator who forecasts an unexpected fall
Q49: Hedging with futures generally involves basis risk.
Q50: The cash settlement of a futures contract
Q51: The 10-year bond futures contract can be
Q52: An advantage of futures contracts over FRAs
Q53: The SPI futures contract can be settled
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