You are managing a $20 million portfolio of US stocks with a beta of 1.2. You expect a bear market in the next three months. Using NASDAQ Futures, show all the steps of how you can (today) completely hedge this portfolio

Date Index Name Value

May 24, 2021. NASDAQ Cash Index 13,000

May 24, 2021 August 2021 NASDAQ futures Index 13,400

Assume that you constructed the hedged position for the appropriate time period.

On the expiration date of the hedged position, the following prices are recorded:

NASDAQ Futures Index = 10,000 and NASDAQ Cash Index = 10,000