a. The existence of financial futures contracts allows our firm to hedge against temporary market declines without

Question:

a. "The existence of financial futures contracts allows our firm to hedge against temporary market declines without liquidating our portfolios."
b. "Given my confidence in the market, I plan to use stock index futures to increase my exposure to market movements."
c. "We used currency futures to hedge the exposure of our international mutual fund focused on German stocks."
Interpret the above comments made by Wall Street analysts and managers.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...