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Suppose that Dynamo Insurance Company forecasts that stock market prices are going to decrease considerably over the next three months and that they want
Suppose that Dynamo Insurance Company forecasts that stock market prices are going to decrease considerably over the next three months and that they want to sell200Nasdaq 100 index futures contracts that have settlements that are six months out. If the index has a value of 8,000, and the value of a contract is 100 times the index's value, then Dynamo Insurance Company will have received $ contracts. from the futures Suppose after three months, the Nasdaq 100 index is 7,900. If Dynamo Insurance Company wants to offset their position, they would futures contracts, resulting in a total of $ Assume that there were no transaction costs and that the values you enter are all positive numbers.) (Hint:
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