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4. Stock index futures contracts 1. 2. 3. STEP: 2 of 3 Suppose that Oracle Insurance Company forecasts that stock market prices are going to
4. Stock index futures contracts 1. 2. 3. STEP: 2 of 3 Suppose that Oracle Insurance Company forecasts that stock market prices are going to increase considerably over the next three months and that they want to purchase2005&P Midcap 400 index futures contracts that have settlements that are six months out. If the index has a value of 2,000, and the value of a contract is 100 times the index's value, then Oracle Insurance Company will have invested $ in the futures contracts. Suppose after three months, the S&P Midcap 400 index is 2,100. If Oracle Insurance Company wants to offset their position, they would futures contracts, resulting in a total Assume that there were no transaction costs and that the values you enter are all positive numbers.) of IS (Hint: Grade Step 2 TOTAL SCORE: 1/4 (to complete this step and unlock the next step)
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