Question: Interpret the following comments made by Wall Street portfolio managers. a . The existence of financial futures contracts allows our firm to hedge against temporary

Interpret the following comments made by Wall Street portfolio managers.
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. "Our firm took a hit because we wrote put options just before the stock market crash."
Interpret the following comments made by Wall Street portfolio managers. a.

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