You are a portfolio manager, currently managing $100 million worth asset including stock and bonds. You are expecting that some your clients will withdraw their contributions and you are also afraid that both share price and bond price may slide what sort of derivative security that you may consider to hedger risk and why? Why do we say we take long or short position in the derivative contract?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You are a portfolio manager, currently managing $100 million worth asset including stock and bonds. You are expecting that some your clients will withdraw their contributions and you are also afraid that both share price and bond price may slide what sort of derivative security that you may consider to hedger risk and why? Why do we say we take long or short position in the derivative contract?

 
 
 
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