Question 4 30 Marks As a security analyst, you are required to hedge a position in the stock market. Now assume that you plan to buy 20,000 shares of a particular stock on June 1 and you are concerned that the market as a whole will be bullish over the next three months. The stock is currently at 32.88 and the beta is 1.1. The September stock index futures is priced at 375.30 on March 1 and has a 500 multiplier. Evaluate your hedging strategy's outcome if on June 1 the futures price is 387.3 and the stock price is 38.63