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Q3. Triple-leveraged ETFs Underlying unlevered ETF demonstrated the following path over a four day period: Day 0 1 2 3 4 Price 100 110 100
Q3. Triple-leveraged ETFs
Underlying unlevered ETF demonstrated the following path over a four day period:
Day 0 1 2 3 4
Price 100 110 100 90 100
Assuming risk-free rate of interest of zero for both lending and borrowing.
a.You are managing a 3X leverage ETF that targets 3 times the daily return of the underlying index. If the starting with a price of 100, what is the daily price?
Day 0 1 2 3 4
Price 100 __ __ __ __
explain to me and show me how u get the numbers/answers please.
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