Suppose now that instead of the hedge that JD opened on 4.3.2020 she timed the market and speculated that the market trend is up. JD used the same data in Q3 to increase the beta of her portfolio by 4 points. I.e., Beta(Target) = Current portfolio Beta + 4.

Question: Use the S&P500 index futures to increase the beta of the JDs portfolio by 4 points and describe the result of this strategy a year later when JD closed her speculative position on 4. 2. 2021.

INPUTS	VALUES
future price on 4.3.20	$2,912.43
future price on 4.2.21	$3,972.84
contract dollar multiplier	$250.00
total contract value on 4.3.20	$728,107.50
total contract value on 4.2.21	$993,210.00
Profit/loss = (total contract value on 4.2.21 - total contract value on 4.3.20
profit/loss on 4.2.21 =	$265,102.50