Feedback for ABC fund has a portfolio of $1.5M in equity. In attempt to hedge against market fluctuations they have decided to hedge using mini CME S&P 500 future contracts. Each index contract has a price of $14000 and beta of 1. Calculate number of contracts required to hedge?

where the hell did 50 come from

Location: Quiz B3C08 Using Futures for Hedging

where the hell did 50 come from

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