Question
A company has a $34 million portfolio with a beta of 0.8. The futures price for a contract on an index is 1,040. Futures contracts
A company has a $34 million portfolio with a beta of 0.8. The futures price for a contract on an index is 1,040. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 1.2? (NOTE: Leave the sign (+/-) in front of the answer - positive = long and negative = short)
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Finance And Control For Construction
Authors: Chris March
1st Edition
0415371155, 978-0415371155
