Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 30 2.5 pts ve bo number of contracts - vi

Question 30 2.5 pts Ve Bo Number of contracts - Vi By Knowing the formula...

90.2K

Verified Solution

Question

Finance

image
Question 30 2.5 pts Ve Bo Number of contracts - Vi By Knowing the formula above, assume you have a $250 million equity portfolio with a beta of 12 to the S&P 500. You want to protect half of your portfolio from a falling market in the next 3 months. You choose to use S&P 500 index tutures when the index is at 3000. That means each contract represents 5750,000 of index exposure or 3000* 250 multiplier). How many future contracts would you use and will you be long or short Long 400 contracts Long 200 contracts Short 400 contracts Short 333 contracts

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Programming
1.2K views

Overloaded Constructors Add a pair of constructors to the Height class that implement the initializations provided by...

General Management
1.2K views

Companies are turning to Customer Relationship Management (CRM) to improve their customer focus. List and explain...

Advance Math
1.2K views

The number of words defined on pages randomly selected from a dictionary are given below. Find...

Accounting
1.2K views

On June 30, 2018, Singleton Computers issued 6% stated rate bonds with a face amount of...

Biology
1.2K views

E) Step 4: Oxidative phosphorylationComplete the following sentences (0.5 points each, 10.5 pointstotal):1. Oxidative phosphorylation...

Physics
1.2K views

SolveLancer Test A fair die is thrown 8 times Find the probability that a prime...

Basic Math
1.2K views

A V 0 03 Nm Its potential energy V is given by the equation mentioned...

Accounting
1.2K views

Earnings Per Share Complex Capital Structure E15.24.a. Prepare a schedule to compute both basic and...

Accounting
1.2K views

Calculate gross profit, cost of goods sold, and selling price MBI Inc, had sales of...

Accounting
1.2K views

Task (A) Merchandising Activities (34 points) The following is a series of related transactions between...

Accounting
1.2K views

Guess delivers the order of jeans to Nordstrom. (Answer from the manufacturer's standpoint.

Accounting
1.2K views

At the beginning of the current year, Poplock began a calendar-year dog boarding business called...