Question
A manager is holding a $2 million stock portfolio with a beta of 1.5. She predicts the S&P500 index will drop 3% next month and
A manager is holding a $2 million stock portfolio with a beta of 1.5. She predicts the S&P500 index will drop 3% next month and would like to hedge the risk of the portfolio using the S&P500 stock index futures with contract multiplier of 200. Suppose that the S&P500 index currently is at 2500. Help the portfolio manager to design a hedge strategy to minimize the risk.
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Day Trading Options For A Living Learn All The Secrets To Make Profits Constantly With Day Trading Options
Authors: Alex Elwin
1st Edition
979-8642874837
