A hedge fund buys the higher priced Rio Tinto share and short sells the lower priced...
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A hedge fund buys the higher priced Rio Tinto share and short sells the lower priced BHP share for the same exposure. Which of the following scenarios will bring a gain to the hedge fund? O A Price of Rio Tinto share decreases by $30 and price of BHP share decreases by $30 O B. Price of Rio Tinto share increases by $30 and price of BHP share increases by $30 O C. Price of Rio Tinto share increases by $20 and price of BHP share increases by $30 O D. Price of Rio Tinto share decreases by $30 and price of BHP share increases by $30 OE Price of Rio Tinto share decreases by $30 and price of BHP share decreases by $50 A hedge fund buys the higher priced Rio Tinto share and short sells the lower priced BHP share for the same exposure. Which of the following scenarios will bring a gain to the hedge fund? O A Price of Rio Tinto share decreases by $30 and price of BHP share decreases by $30 O B. Price of Rio Tinto share increases by $30 and price of BHP share increases by $30 O C. Price of Rio Tinto share increases by $20 and price of BHP share increases by $30 O D. Price of Rio Tinto share decreases by $30 and price of BHP share increases by $30 OE Price of Rio Tinto share decreases by $30 and price of BHP share decreases by $50
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