An investor owns one thousand shares of Reliance. Around budget time, he gets uncomfortable with the price movements. One contract on Reliance is equivalent to 100 shares. Which of the following will give him the hedge he desires?
A. Buy 5 Reliance futures contracts
B. Sell 10 Reliance futures contracts
C. Sell 5 Reliance futures contracts
D. Buy 10 Reliance futures contracts
Answer: Option B
This Question Belongs to Commerce >> Banking And Financial Institutions
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