IM TH MA ON Y3SV3 43WATOJIH puny . 21. (9 points) An investor has a portfolio worth $4.1 million. He is concerned about maintaining his value as he thinks the market is about to decline, so he decides to hedge his position with six- month futures contracts on the Dow Jones Industrial Average. which are currently trading at 18,440. Given that he wants to cover his full $4.1 million, how should he set up this hedge? Assume that over the next six months prices do fall, and the value of his portfolio drops to $3.4 million. The futures contracts are now trading at 15,300. How much will he make (or lose) on the hedge and is it enough to offset the loss on his portfolio? Explain (use 10 for the multiple per contract). u san .3 4,100 1000 181440 X 10 total margin deposi