Attempts Keep the Highest/3 5. Single stock futures contracts 1. 2. STEP: 2 of 2 Suppose that Sam forecasts that Cliffway Telecomms's stock price is going to decrease considerably over the next three months and that he wants to sell futures contracts on their stock prior to the price decreasing. If Sam decides to sell futures on 1,000 shares (where the size of one contract is 100 shares), and the current price per share is $13, then he will have invested $13,000 in the futures contracts. Suppose after three months, Cliffway Telecomms's stock is $10 per share. If Sam wants to offset his position, he would purchase futures contracts on Cliffway Telecomms shares, resulting in a total Assume that there were no transaction costs and that the values you enter are all positive numbers.) of (Hint: Grade Final Step TOTAL SCORE: 1/3 (to complete this step and unlock the next step) Attempts Keep the Highest/3 7. Globalization of futures markets Eric, a United States portfolio manager, is monitoring the investments that he made in high-risk stocks in U.S. and South Korean firms. He recognizes that these are high-risk investments and wants to hedge against adverse effects that may result from various types of risk. He expects that over the next year, U.S. and South Korean interest rates will decrease, the U.S. stock market will perform poorly, the South Korean stock market will perform well, and the South Korean won will depreciate against the dollar. What type of position should Eric consider taking in U.S. and South Korean bond futures to hedge his investment portfolio? O Eric should buy U.S. bond futures and sell South Korean bond futures. O Eric should buy both U.S. and South Korean bond futures. O Eric should sell both U.S. and South Korean bond futures. O Eric should sell U.S. bond futures and buy South Korean bond futures. What type of position should Eric consider taking in U.S. and South Korean stock index futures to hedge his investment portfolio? O Eric should buy both U.S. and South Korean stock index futures. O Eric should sell both U.S. and South Korean stock index futures. Eric should sell U.S. stock index futures and buy on South Korean stock index futures. O Eric should buy U.S. stock index futures and sell South Korean stock index futures. What type of position should Eric consider taking in South Korean currency futures to hedge his investment portfolio? O Eric should sell South Korean won futures. O Eric should not take a position on South Korean won futures. O Eric should buy South Korean won futures