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You are an analyst in the Sales and Trading dept at Citi and your client currently has UK market exposure that she is worried about.

You are an analyst in the Sales and Trading dept at Citi and your client currently has UK market exposure that she is worried about. She is most concerned that the UK market will have a decline in the next 6 months and her UK market exposure will devalue. What trade is the best you can offer her to help hedge her exposure?

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A short position in a 6 month SP500

 

A long position in a 1 year FTSE100

 

A long position in 6 month T bill futures

 

A short position in a 6 month FTSE100

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