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. Consider the following portfolio and revise it with futures contracts. Stock 8,000,000 Bonds 4,000,000 Cash 2, 000 000 Total 14,000,000 S&P 500 index futures

. Consider the following portfolio and revise it with futures contracts.

Stock 8,000,000

Bonds 4,000,000

Cash 2, 000 000

Total 14,000,000

S&P 500 index futures = 2070 with multiplier of 250. You decide to go short 5 stock futures contracts.

Treasury bonds futures are priced at 162-20. You decide to go long 12 bond futures contracts. T. bond futures are based on $100,000 par value.

Portfolio

Current Weight

Futures Position

Revised Portfolio

Revised Weights

Stock=

Stock=

Cash=

Total =

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