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On 11/30/2008, the SP500 index has fallen to 896 and the SMIF portfolio to $683,398 and you decide to terminate the hedge, believing the market

On 11/30/2008, the SP500 index has fallen to 896 and the SMIF portfolio to $683,398 and you decide to terminate the hedge, believing the market has bottomed out.

Calculate the profit on the SMIF portfolio, the put options, and the total hedge.

How effective was your hedge in protecting against the catastrophic loss in value on the SMIF portfolio?

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