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If you think stock prices will fall between October 2013 and December 2013, the S&P 500...

If you think stock prices will fall between October 2013 and December 2013, the S&P 500 index option will fall. Thus, a short position in the S&P 500 index futures contract is the profitable one to take.

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Answer #1

If you predict that the price of the stocks and S & P 500 index will fall, you should buy the shares and index when the price is low. Taking a ping position in the futures market is a profitable option.

Hence, if you thinkstock prices willfall between October 2013 and December 2013, the S & P50p index option will fall. Thus, you should not take a short position in the S & P 500 index futures contract as it is not profitable.

Answer - False

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