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which of the following is a likely reason for a portfolio manager to sell a stock...

which of the following is a likely reason for a portfolio manager to sell a stock index future short?

A. He believes the market will rise.

B. He wants to lock in current prices.

C. He wants to reduce stock market risk.

D. Both B and C are correct.

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Answer #1

Option B is correct

He wants to lock in current prices

Explanation:

By short selling index futures, portfolio manager is of the view that market will fall and want to lock in the unrealized profit.

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