+1-415-670-9189
info@expertsmind.com
Would you go short or long on the futures contract
Course:- Financial Management
Reference No.:- EM13942978





Assignment Help >> Financial Management

Your stock portfolio is worth $10M with a beta of 1.1. The spot price of S&P 500 is 950. Each S&P 500 contract is for $250 per index points. To protect against the market decline

a. How many futures contract should you need?

b. Would you go short or long on the futures contract




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
You can invest in asset 1 with μ1 = 0.1, σ1 = 0.3 and asset 2 with μ2 = 0.2, σ2 = 0.5, with correlation ρ = 0.2. Find the minimum variance point and the portfolio strategy tha
A forward contract to exchange cash flows based on the level of a specific interest rate index is called a(n). A long contract requires that the investor. In most of the world
You have a chance to buy an annuity that pays $3,050 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is
Firm S is considering adding a robotic device to its production line. The device base price is $1,038,000.00, and it would cost another $21,500.00 to install it. The machine f
Consider the following information: Rate of Return if State Occurs State of Probability of State Economy of Economy Stock A Stock B Recession .24 .055 –.44 Normal .64 .135 .34
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3635 per year, paid at the beginning of each ye
The following information relates to Zync Corporation. Current assets $200,000 Current liabilities $150,000 Long-term assets $600,000 Long-term liabilities $400,000 Based on t
What is the value of a 20-year, noncallable bond with an annual coupon rate of 9.5%, but making semiannual interest payments? The bond has a face value of $1,000, and you requ