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Question
You manage a stock portfolio worth $3,000,000 that has a beta of 1.25. In order to hedge the portfolio, you decide to trade S&P 500 futures contracts. Each contract is worth $250 per index point. How many contracts do you need to buy or sell if the S&P 500 index is currently at 1,500?a. sell 10 contracts
b. buy 10 contracts
c. sell 8 contracts
d. buy 8 contracts
e. buy 20 contracts
Answer
This answer is hidden. It contains 3 characters.
Related questions
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