Use the table below for E-mini S&P 500 futures. Spot price as of 2/28/2023 is 3,970.15, each E-mini S&P500 contract is for $50 x index. Month Futures price Mar-2023 3,968.00 Jun-2023 4,003.50 Sep-2023 4,048.75 Dec-2023 4,107.25 You have a $10 million equity portfolio you wish to hedge between now and 9/1/2023. The Beta of your portfolio is 1.0, how should you structure a hedge using E-mini S&P 500 futures contracts? Pick the best answer. Group of answer choices Buy 50 E-Mini S&P 500 contracts expiring in Sep. Sell 50 E-Mini S&P 500 contracts expiring in Sep. Buy 49 E-Mini S&P 500 contracts expiring in Sep. Sell 49 E-Mini S&P 500 contracts expiring in Sep.
Use the table below for E-mini S&P 500 futures. Spot price as of 2/28/2023 is 3,970.15, each E-mini S&P500 contract is for $50 x index. Month Futures price Mar-2023 3,968.00 Jun-2023 4,003.50 Sep-2023 4,048.75 Dec-2023 4,107.25 You have a $10 million equity portfolio you wish to hedge between now and 9/1/2023. The Beta of your portfolio is 1.0, how should you structure a hedge using E-mini S&P 500 futures contracts? Pick the best answer. Group of answer choices Buy 50 E-Mini S&P 500 contracts expiring in Sep. Sell 50 E-Mini S&P 500 contracts expiring in Sep. Buy 49 E-Mini S&P 500 contracts expiring in Sep. Sell 49 E-Mini S&P 500 contracts expiring in Sep.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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