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Suppose you think the market is currently overvalued and is very likely to decline in the near future, but you are worried about the index
Suppose you think the market is currently overvalued and is very likely to decline in the near future, but you are worried about the index continuing to increase for a while. Which of the following derivatives contracts written on the S&P500 index would provide the best strategy to profit from a market decline while limiting losses from a potential increase?
a) a put option
b) a long futures contract
c) a short futures contract
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