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Question 5 Suppose you own a portfolio of blue chip common stocks. You wish to hedge your stock portfolio using financial futures contracts. A. Should

Question 5

Suppose you own a portfolio of blue chip common stocks. You wish to hedge your stock portfolio using financial futures contracts.

A. Should you buy or write a futures contract to hedge? Briefly explain.

B. Which financial futures contract below would probably be best to use? Briefly explain.

- Dow Jones Industrial Average futures

- S&P 500 futures

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