Which of the following trading strategies are correct?
I. | If you expect the British pound to appreciate in value, you should short the pound. |
II. | If you expect interest rates to rise, you should go long on interest rate futures. |
III. | If you expect the stock market to rise, you should go long on stock-index futures. |
IV. | If you expect the stocks in your portfolio to temporarily decline in value, you should short stock-index futures.
▸ I and II only
▸ II and IV only
▸ III and IV only
▸ I and III only
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