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A trader is short a portfolio worth $250 million that mirrors the performance of a stock index. The stock index is currently 3,975 . Futures

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A trader is short a portfolio worth $250 million that mirrors the performance of a stock index. The stock index is currently 3,975 . Futures contracts trade on the index with one contract being on 50 times the index. To remove market risk from the portfolio the trader should: Buy 252 contracts Sell 252 contracts Sell 1,258 contracts Buy 1,258 contracts

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