SECTION 3.2 PURCHASING 15 FUTURES CONTRACTS INCREASES THE BETA TO 1.0...

5.) Given the committee's view about the sovereign debt crisis, which hedging strategy is

most likely to result in Packer earning the US risk-free rate of return?

A. Strategy 3

B. Strategy 1

C. Strategy 2

Answer = C

“Risk Management Application of Option Strategies,” Don M. Chance