Investors may find hedging using options unattractive

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Reference no: EM132036915

1. Investors may find hedging using options unattractive? because:

A. the protection is permanent and the investor cannot exit.

B. the face value of their position is unknown.

C. the option premium is taxable.

D. the premium is expensive.

2. To hedge a bond portfolio against rising interest? rates, an investor should

A. buy interest rate futures.

B. buy Treasury Notes.

C. sell interest rate futures.

D. buy a stockminus?index future.

Reference no: EM132036915

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