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Using the information from the previous question:Let's suppose that we wish to hedge the portfolio using index futures. The quote for S&P 500 e-minis is

Using the information from the previous question:Let's suppose that we wish to hedge the portfolio using index futures. The quote for S&P 500 e-minis is 3111.75.

How many contracts do we need to create a delta neutral portfolio?

If the market drops 6% how much does our futures position increase?

What is our total profit or loss?

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