Question
Mr. Avinash has bought 1000 shares of MUL (with beta value of 1.25) at 7,550 each on 20th July 2017. He wants to hold
Mr. Avinash has bought 1000 shares of MUL (with beta value of 1.25) at 7,550 each on 20th July 2017. He wants to hold the investment till the end/of September 2017. On the date of investment, September Nifty futures are available at 9500) with lot size of 75 points. How would the investor hedge his market exposure? Find out the profit or loss of the investor on the close of September 2017 (1) Both the Nifty and MUL rise by 10% (i.e., Nifty = 10450 & MUL = 8305) - S (ii) Both the Nifty and MUL fall by 10% (i.e., Nifty = 8550 & MUL = 6795) -
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
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