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If Company A has a portfolio of shares as an investment and it expects a...

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Accounting

If Company A has a portfolio of shares as an investment and it expects a downturn in the share market, then it can hedge the possible loss by:

a.

taking a buy position on futures contracts at a predetermined price

b.

entering into a buy position in a futures contract and simultaneously taking a sell position in another futures contract

c.

taking a sell position on futures contracts at a predetermined price

d.

None of the given answers are correct.

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