n NISM Certifications
VIII NISM Series VIII
Medium

An investor has implemented a Short Hedge using stock futures. This is done to protect ______ .

Practice question from NISM Series VIII - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The investor’s existing stock holding against an anticipated price fall

    Correct answer

  2. B

    Against a price rise for a planned stock purchase in the future

  3. C

    Against both a stock price fall and stock price rise in the future

  4. D

    Against a fall in the market as a whole

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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