Question
A company has a $25 million portfolio with a beta of 105. The futures price for a contract on an index is 950. Futures contracts
A company has a $25 million portfolio with a beta of 105. The futures price for a contract on an index is 950. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.84?
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Public Finance In Canada
Authors: Harvey S. Rosen, Wen, Snoddon
4th Canadian Edition
0070071837, 978-0070071834
