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Question
You hedged a $2,000,000 portfolio of stocks that you manage by selling eight S&P 500 futures contracts at 1,450. Each contract is worth $250 per index point. Recently, your portfolio lost 4% of its value, while the S&P 500 index declined to 1,400. What is your total (spot plus futures) gain (loss)?a. $80,000
b. $20,000
c. ($20,000)
d. (80,000)
e. (180,000)
Answer
This answer is hidden. It contains 3 characters.
Related questions
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