Question
Information on your stock portfolio is given as: Current portfolio value $1,000,000 Portfolio market beta 1.0 Current S&P 500 index 2,500 What action is needed
Information on your stock portfolio is given as:
| Current portfolio value | $1,000,000 |
| Portfolio market beta | 1.0 |
| Current S&P 500 index | 2,500 |
What action is needed today to insure against your portfolio value dropping below $800,000 in 2 years?
Group of answer choices
Buy 800 2-yr S&P500 put options with strike price of 2,000.
Buy 400 2-yr S&P500 put options with strike price of 2,250.
Buy 400 2-yr S&P500 put options with strike price of 2,000.
Buy 800 2-yr S&P500 put options with strike price of 2,250.
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Fundamentals Of Water Finance
Authors: Michael Curley
1st Edition
1498734170, 978-1498734172
