Question

A client's portfolio with a beta of 1.50 is worth $1 million.
The S&P 500 price changes from $2,000 to $1,800. The price on
the S&P 500 futures (each contract is on $50 times the index)
changes from $2,400 to $2,100. What is the dollar value of
gains/losses made **on futures** using the hedging
strategy. (Calculate only the amount gained or lost through the
change in the futures price)

Answer #1

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