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)
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
Get Answers For Free
Most questions answered within 1 hours.