An investor's portfolio with a beta of 1.50 is worth $1 million. The price of the S&P500 changes from $2,000 to $1,800. The S&P500 futures price (each contract is $50 times the index) changes from $2,400 to $2,100. What is the dollar value of the realized gains/losses on futures using the hedging strategy. (Calculate only the amount gained or lost through the futures price change)

(Round to the nearest whole dollar amount. Enter only the numeric part of the answer without the $ sign or commas. 

Answer rating: 100% (QA)

To calculate the dollar value of the realized gainslosses on futures using the hedging strategy we c... View the full answer