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25. Answer the followings I invest in LQ45 stocks. If the LQ45 index increases, then I gain, vice versa. Draw a diagram showing my spot
25. Answer the followings I invest in LQ45 stocks. If the LQ45 index increases, then I gain, vice versa. Draw a diagram showing my spot position. Am I long or short stocks? b. If I want to hedge using forward, should I long or short forward? What is my underlying asset? Draw a diagram to show. c. If I want to hedge using an option, should I long or short, call or put? What is my underlying asset? Draw a diagram to show. d. If I speculate that stock prices are going to decrease, using forward, what position I have to take? Draw the diagram to show the situation
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