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For the month of January 2023, your trader ran a perfectly balanced delta neutral long/short equity portfolio. Its gross market value is USD 100MM. Benchmark

For the month of January 2023, your trader ran a perfectly balanced delta neutral long/short equity portfolio. Its gross market value is USD 100MM.

Benchmark is US Federal Funds Effective Rate (bloomberg: FEDL01 Index). Long spread is +10bps and short -10bps. And average stock borrow rate is 1%.

Say, gross market value remained steady. What is the expected total financing cost for January 2023 of this portfolio? Show calculation.

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