Series 7 - General Securities Representative Exam

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

A hedge fund is short 3 million dollars of small cap stocks. He is concerned about a market reversal to the upside and wants to hedge the portfolio. Which of the following is he MOST likely to do?

Buy SPX puts

A

Buy RUT calls

B

Sell RUT call spreads

C

Sell the 10 delta DJIA calls via the DIA ETF

D