Which of the following statements are true concerning stock index futures?

1. Stock index futures may be used to hedge against stock prices rising.

2. Stock index futures require substantial margin and are a source of financial leverage.

3. Stock index futures are settled in cash and not in delivery.

4. Stock index futures are settle in specific securities.

Select one:

a.

2 and 3

b.

2 and 4

c.

1 and 3

d.

1 and 4