Question: please answer both questions , Thank you!!! You are a portfolio manager for a large pension plan. You will receive an extremely large contribution into

please answer both questions , Thank you!!!
please answer both questions , Thank you!!! You are a portfolio manager
for a large pension plan. You will receive an extremely large contribution

You are a portfolio manager for a large pension plan. You will receive an extremely large contribution into the plan next month and feel that the market could increase dramatically in the next month. What position should you take in the futures market that could increase your returns? 1) buy stock index futures today and sell when the contribution arrives 2) sell stock index futures today and buy when the contribution arrives 3) sell calls on futures today and exercise when the contribution arrives 4) buy puts on futures today and exercise when the contribution arrives Investors buy put options becauseD 1) they believe the price of the underlying stock will decline 2) they believe the price of the underlying stock will increase 3) they want the income derived from the put 4) they want the long-term value options provide

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