n NISM Certifications
XIII NISM Series XIII
Medium

Which of these strategies is NOT a hedge?

Practice question from NISM Series XIII for SIF - Mock Test 8 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Buying out-of-the-money index call and selling index put to speculate

    Correct answer

  2. B

    Short index futures to protect against decline

  3. C

    Locking currency with futures

  4. D

    Buying index puts to protect portfolio

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

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