Question
A company has a $45 million portfolio with a beta of 1.3. The S&P index is currently standing at 4600. Futures contracts on 250 times
A company has a $45 million portfolio with a beta of 1.3. The S&P index is currently standing at 4600. Futures contracts on 250 times the index can be traded. What trade is necessary to increase beta to 2.5.
(a) Long 460 contracts
(b) Short 460 contracts
(c) Long 180 contracts
(d) Short 180 contracts
(e) Long 280 contracts
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Financial Markets And Institutions A Modern Perspective
Authors: Anthony Saunders, Marcia Millon Cornett, Marcia Cornett
2nd Edition
007294109X, 978-0072941098
