april 2019 q2.

Discussion in 'SP5' started by dimitris13, Apr 5, 2020.

  1. dimitris13

    dimitris13 Member

    how we deduce that when it says moving ewuities from global to emerging and asks about strg with dervts it implies that we should mention futures and swaps bc it is hedged?
    2. in other places in notes it mentions options to gain exposure
     
    Last edited by a moderator: Apr 5, 2020
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    Options hedge downside risk only. Futures and options can completely hedge exposure in both directions. They are covered in the portfolio management chapters of the course in terms of how to achieve the hedge.
     

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