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You are a junior analyst for Brown Holdings. you are concerned that the US market is about to enter a recession for the next six
You are a junior analyst for Brown Holdings. you are concerned that the US market is about to enter a recession for the next six months. Which of the following strategies is the best to employ to protect Brown Holdings from experiencing the negative effects from this recession?
a. Sell an SP500 futures contract for maturity in 6 months.
b. Sell an SP500 futures contract for maturity in 1 year while simultaneously buying a FTSE100 futures contract for maturity in 6 months.
c. Buy and SP500 futures contract for maturity in 1 year.
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