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If Company A has a portfolio of shares as an investment and it expects a downturn in the share market, then it can hedge the
If Company A has a portfolio of shares as an investment and it expects a downturn in the share market, then it can hedge the possible loss by:
a.
taking a buy position on futures contracts at a predetermined price
b.
entering into a buy position in a futures contract and simultaneously taking a sell position in another futures contract
c.
taking a sell position on futures contracts at a predetermined price
d.
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