Practice Schweser Exam Vol2, Exam 2PM, Q19.1 management, sometimes, planning, position, question

Chuckrox8

Appreciate anyone who could shed some light on this. Thank you!

Practice Exam Vol. 2, Exam 2PM Question 19.1, p.293
Why must we sometimes apply the future's time to maturity (5 months) to the portfolio value and sometimes do not? how do we know when to do it? The question paragraph never said that since the 200-day moving average is sending a bearish signal, UCB management decided to "immediately" neutralize its equity position. It never mentioned planning to do that in 5 months. Is this answer guideline a mistake?