Q3 You are the manager of a stock portfolio. On January 1. your holding consists of 10 stocks listed in the following table, which you intend to sell on July 1. You are concerned about market decline over the next 6 months., the number of shares their prices and betas are shown below. Stock # of shares Beta January 1, price July 1. price Nike 10,000 0.51 $65.10 552.20 GE 15,000 0.99 $17.90 $16.00 Caterpillar 4,000 1.62 $140.47 S126.47 P&G 7,000 0.48 $90.43 $82.35 Coca Cola 12,000 0.58 $45.22 $41.34 On January 1. you decide to execute a hedge using a S&P 500 futures contract that has a multiplier of $500. The September contract price for the futures contact is 2645.20. On July 1, the September futures price is 2380.88. Find out how effective is your hedge? Also will you go long or short on futures contract? Calculate the final value of your hedge. Q3 You are the manager of a stock portfolio. On January 1. your holding consists of 10 stocks listed in the following table, which you intend to sell on July 1. You are concerned about market decline over the next 6 months., the number of shares their prices and betas are shown below. Stock # of shares Beta January 1, price July 1. price Nike 10,000 0.51 $65.10 552.20 GE 15,000 0.99 $17.90 $16.00 Caterpillar 4,000 1.62 $140.47 S126.47 P&G 7,000 0.48 $90.43 $82.35 Coca Cola 12,000 0.58 $45.22 $41.34 On January 1. you decide to execute a hedge using a S&P 500 futures contract that has a multiplier of $500. The September contract price for the futures contact is 2645.20. On July 1, the September futures price is 2380.88. Find out how effective is your hedge? Also will you go long or short on futures contract? Calculate the final value of your hedge