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Question 1 (40 marks) Today is 4 December 2017. You have a portfolio of four stocks. They are HK & China Gas (0003), AIA Group

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Question 1 (40 marks) Today is 4 December 2017. You have a portfolio of four stocks. They are HK & China Gas (0003), AIA Group (1299), China Mobile (0941) and SHK PPT (0016) with 600 lots, 1,000 lots, 500 lots and 250 lots respectively. The market is very uncertain and you anticipate that there might be a fall within this month. The closing prices of the stocks, HSI and HSI futures contracts as of today are: HK & China Gas: $14.05 (Lot size = 1000 shares) AIA Group: $63.6 (Lot size = 200 shares) China Mobile: $78.5 (Lot size = 500 shares) SHK PPT: $124.9 (Lot size = 1000 shares) Hang Seng Index: 29,138.28 Hang Seng Index Futures (December): 29,193 (with $50 per index point) [Historical prices of 4 stocks and HSI from 5 December 2016 to 4 December 2017 are shown in excel file FIN4003_Assignment_1_data] a) Determine the value of your stock portfolio and the weights of individual stocks in the portfolio on 4 December 2017. (10 marks) Question 1 (40 marks) Today is 4 December 2017. You have a portfolio of four stocks. They are HK & China Gas (0003), AIA Group (1299), China Mobile (0941) and SHK PPT (0016) with 600 lots, 1,000 lots, 500 lots and 250 lots respectively. The market is very uncertain and you anticipate that there might be a fall within this month. The closing prices of the stocks, HSI and HSI futures contracts as of today are: HK & China Gas: $14.05 (Lot size = 1000 shares) AIA Group: $63.6 (Lot size = 200 shares) China Mobile: $78.5 (Lot size = 500 shares) SHK PPT: $124.9 (Lot size = 1000 shares) Hang Seng Index: 29,138.28 Hang Seng Index Futures (December): 29,193 (with $50 per index point) [Historical prices of 4 stocks and HSI from 5 December 2016 to 4 December 2017 are shown in excel file FIN4003_Assignment_1_data] a) Determine the value of your stock portfolio and the weights of individual stocks in the portfolio on 4 December 2017. (10 marks)

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