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Chapter 4 of 10
Strategies Using Futures
24 marks (16%)~8 hours study14 sections · 12 practice questions
Learning objectives
- Construct simple hedge, speculative, and arbitrage strategies using futures.
- Compute the optimal hedge ratio for a portfolio using index futures.
- Identify cash-and-carry and reverse cash-and-carry arbitrage opportunities.
- Use futures spreads (calendar, inter-commodity) to express views.
- Apply futures hedging in a SIF / mutual-fund portfolio context.
Topics covered
01Hedging strategies — long hedge, short hedge
02Hedge ratio calculation
03Beta hedging of equity portfolios
04Cash-and-carry arbitrage
05Reverse cash-and-carry arbitrage
06Speculation — long and short positions
07Calendar spreads
08Inter-commodity / inter-product spreads
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A peek at what's inside Chapter 4:
14
study sections
First section: "Why this chapter matters"
13
cheat-sheet terms
Includes: Short hedge, Long hedge, Hedge ratio formula...
12
practice MCQs
Interactive — click an option to reveal the correct answer + explanation
3 underlying tabs
Equity / Currency / Interest Rate views
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