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you are to hedge the market risk of a one-stock portfolio using stock index futures. Suppose today is Oct 10,2022 . On Oct 10 ,

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you are to hedge the market risk of a one-stock portfolio using stock index futures. Suppose today is Oct 10,2022 . On Oct 10 , you purchase either 100 or 1,000 or 10,000 or 100,000 shares of you selected stock either from the Chinese A-share market or from the US equity market. If the selected stock is traded in China, you will use CSI 300 Index Futures to crosshedge. If the selected stock is traded in the U.S., you will use E-mini S\&P 500 Index Futures to cross-hedge. You expect to sell all of your shares on Oct 21 , so this hedge is only necessary for a few weeks. Please find the stock beta from yahoo finance.com. Then do the following: A. Calculate the number of futures contracts that you will need to hedge the market risk of your portfolio. Make sure you give all the details needed for the hedging strategy you are using. Please ensure the number of futures contracts is a positive integer. B. Prepare a computer graph showing the total value of the stock portfolio, in comparison with the total value of futures contracts needed in the hedging strategy over the period from Oct 10 to Oct 21. C. Calculate the gains and losses from your stock and futures position at the end of each trading day, using the close prices of stock and futures. Trace these daily gains and losses in a table over the period from Oct 10 to Oct 21. D. How well did the hedge do? (i.e., did the gains and losses cancel each other out? If not, show by how much?) Also, provide at least two factors which may impact on the hedging performance and explain why? you are to hedge the market risk of a one-stock portfolio using stock index futures. Suppose today is Oct 10,2022 . On Oct 10 , you purchase either 100 or 1,000 or 10,000 or 100,000 shares of you selected stock either from the Chinese A-share market or from the US equity market. If the selected stock is traded in China, you will use CSI 300 Index Futures to crosshedge. If the selected stock is traded in the U.S., you will use E-mini S\&P 500 Index Futures to cross-hedge. You expect to sell all of your shares on Oct 21 , so this hedge is only necessary for a few weeks. Please find the stock beta from yahoo finance.com. Then do the following: A. Calculate the number of futures contracts that you will need to hedge the market risk of your portfolio. Make sure you give all the details needed for the hedging strategy you are using. Please ensure the number of futures contracts is a positive integer. B. Prepare a computer graph showing the total value of the stock portfolio, in comparison with the total value of futures contracts needed in the hedging strategy over the period from Oct 10 to Oct 21. C. Calculate the gains and losses from your stock and futures position at the end of each trading day, using the close prices of stock and futures. Trace these daily gains and losses in a table over the period from Oct 10 to Oct 21. D. How well did the hedge do? (i.e., did the gains and losses cancel each other out? If not, show by how much?) Also, provide at least two factors which may impact on the hedging performance and explain why

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