Question
You are given the following information about a portfolio you are to manage. Portfolio value=$100 million Portfolios beta=0.20 Value of S&P 500=1,500 What position on
You are given the following information about a portfolio you are to manage.
Portfolio value=$100 million
Portfolios beta=0.20
Value of S&P 500=1,500 What position on S&P 500 is necessary to hedge the equity portfolio? Note that each point of one S&P 500 Index futures contract is worth $250.
| A. | Short 53 contracts | |
| B. | Long 40 contracts | |
| C. | Long 53 contracts | |
| D. | Short 40 contracts |
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The Complete FinOps Handbook Essential Tools And Techniques For Financial Operations
Authors: Peter Bates
1st Edition
1922435546, 978-1922435545
