Question
Triple-leveraged ETFs Underlying unlevered ETF demonstrated the following path over a four day period: Day 0 1 2 3 4 Price 100 110 100 90
Triple-leveraged ETFs
Underlying unlevered ETF demonstrated the following path over a four day period:
Day 0 1 2 3 4
Price 100 110 100 90 100
Assuming risk-free rate of interest of zero for both lending and borrowing.
b.You are managing a 3X leverage ETF that targets 3 times the daily return of the underlying index. If the starting with a price of 100, what is the daily position in the un-levered ETF and cash?
Day. 0 1 2 3 4
Position
in unlevered 300 __ __ __ __
ETF.
Position in cash -200 __ __ __ __
Day. 0 1 2 3 4
Rebal Trade in ETF ___ ____ ___ ___ ___
Change in Cash ___ ___ ___ ___ ___
fill in blanks and please explai how you get the answers
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