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1. Youmanage a 50 million euros portfolio of German stocks, which you decide to hedge in full using DAX futures contracts. The DAX index currently

1.Youmanage a 50 million euros portfolio of German stocks, which you decide to hedge in full using DAX futures contracts. The DAX index currently stands at 13,076.72 and the nearby DAX futures contract at 13,122.30. As per the futures contract specification, each DAX point is worth 25 euros. Therefore, your naive hedging strategy should beto:

A.Buy 152contracts

B.Sell 152contracts

C.Buy 153contracts

D.Sell 153contracts

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