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According with this results respond the following question: Hedge analysis. Answer the following questions: How well did the hedge do? In other words, did the
According with this results respond the following question: Hedge analysis. Answer the following questions: How well did the hedge do? In other words, did the gains and losses cancel each other out? If not, by how much was the difference? (your total net profit) Why do you think the hedge was (was not) perfect?
A. Profit or loss from your ETF position. You must show your own calculations. BBMC # of Shares =5481 Profit 1=(74.0970.65)5481 Profit 1=18854.64 B. Profit or loss from your future position. You must show your own calculations. Contract size =50 # of contracts =2 Profit 2=(3809.253911.25)502 C. Net profit from the Iong position in the ETF and the short position in the future contract. Total Profit =18854.6410200 Total Profit =8654.64 5. Hedge analysis. Answer the following questions: How well did the hedge do? In other words, did the gains and losses cancel each other out? If not, by how much was the difference? (your total net profit) Why do you think the hedge was (was not) perfectStep by Step Solution
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