Investment Manager expects to invest in Australian equities in six months but is concerned that they may appreciate sharply in the near future. Investment Manager can hedge by:

Select one:

a. buying futures contracts based on the S&P/ASX 50 index now and closing this position in about six months with a sell order.

b. buying futures contracts based on the S&P/ASX 50 index now and receiving delivery of the equities in six months

c. None of the given answers

d. selling futures contracts based on the S&P/ASX 50 index now and closing this position in about six months with a buy order.

e. selling futures contracts based on the S&P/ASX 50 index now and receiving delivery of the equities in six months.