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formula? 1) You're planning to hedge a portfolio. Calculate the total value of the position at the end of the holding period Holding Period =6
formula?
1) You're planning to hedge a portfolio. Calculate the total value of the position at the end of the holding period Holding Period =6 months Annual Risk Free Interest Rate =3% Annual Dividend yield on index 1.2% Index ( S\&P 500) current price =$750 Future Price of S\&P 500=$862.50 Value of portfolio held =$1,250,000 Portfolio =1.25 One contract =$150 Value of index in 6 months =$675 Futures price of index in 6 months =$777.375 Step by Step Solution
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