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A company has a $33 million stock portfolio with a...

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A company has a $33 million stock portfolio with a beta of 1.2. The S&P index futures price is currently standing at 1000. Futures contracts on $250 times the index can be traded. How many contracts is needed to reduce the beta to 0.8? If a short position is needed, report a negative number. (margin of error = +/- 1) The answer is -53 +- 1. I need step by step work shown how the answer was gotten.

 

Paper#10053 | Written in 18-Jul-2015

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