which of the following is a likely reason for a portfolio manager to sell a stock...
which of the following is a likely reason for a portfolio manager to sell a stock index future short?
A. He believes the market will rise.
B. He wants to lock in current prices.
C. He wants to reduce stock market risk.
D. Both B and C are correct.
Homework Answers
Option B is correct
He wants to lock in current prices
Explanation:
By short selling index futures, portfolio manager is of the view that market will fall and want to lock in the unrealized profit.
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