Solution-Calculate the profit or loss position of futures

Calculate the profit or loss position of futures transaction

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Question 1: A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 108 S&P/ASX All Ordinaries Share Price Index futures contracts at 2478. Three months later, when the manager closes out the position, the contract is trading at 2512. Calculate the profit or loss position of the futures transactions (assume contract multiplier of $25)

Reference no: EM132561100

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Calculate the profit or loss position of futures transaction

Reference no: EM132561100

Reference no: EM132561100

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