Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. if company a has a portfolio of shares as an inves

If Company A has a portfolio of shares as an investment and it expects a...

80.2K

Verified Solution

Question

Accounting

If Company A has a portfolio of shares as an investment and it expects a downturn in the share market, then it can hedge the possible loss by:

a.

taking a buy position on futures contracts at a predetermined price

b.

entering into a buy position in a futures contract and simultaneously taking a sell position in another futures contract

c.

taking a sell position on futures contracts at a predetermined price

d.

None of the given answers are correct.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

The cost of debt?Gronseth Drywall Systems, Inc., is in discussions with its investment bankers regarding the...

Chemistry
1.2K views

Carbon fossil fuels are utilized to power our vehicles, make oil, and even t-shirts. The EPA...

Physics
1.2K views

You buy a 75 W light bulb The label means that A no matter how...

Calculus
1.2K views

K Name two pairs of congruent angles in the fi

Calculus
1.2K views

Determine the area of the given region under the curve 1 y

Calculus
1.2K views

y b 4 4 0 a f 1 6 f 3 c F 4 2...

Accounting
1.2K views

Explain why each of the following stakeholders might want financial accounting information. What type of...

Accounting
1.2K views

Banning Corporation uses the allowance method to account for uncollectible receivables. At the beginning of...

Accounting
1.2K views

Using the indirect method, categorize the following transaction to the appropriate activity for the year...

Accounting
1.2K views

What is the basis of gift property used to calculate gain if the fair market...

Accounting
1.2K views

Please calculate the remaining parts and show me the steps of how they have been...

Accounting
1.2K views

1 Below are Fathurrahman Company unfinished report for operating results for the month of June...