Stock index futures are useful in providing a hedge against movements in an underlying financial asset.

Name: Stock index futures are useful in providing a hedge against movements in an underlying financial asset.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Stock index futures allow investors to mitigate the risk of price movements in the underlying stock market index by taking opposite positions in the futures market. This helps to offset potential losses in a stock portfolio or other financial assets.

Stock Index Futures Are Useful in Providing a Hedge Against