A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in...

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A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later. A funds manager manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 S&P/ASX200 Share Price Index futures contracts at 5,403. Three months later, when the manager closes out the position, the contract is trading at 5,492. One index point worth $25. Calculate the profit or loss position of the futures transactions. (Note:Please insert "-" negative sign if the answer in loss) Question 5 A company has a $36 million portfolio with a beta of 1.2. The stock exchange share price index is standing at 910 currently. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9? Question 6 A funds manager assigned to invest $10 milion S&P 500 share portfolio with a beta of 1 in next three months, but is concerned that stock prices in the market will fall over the next three months. The S&P 500 Index currently is standing at 2000, meanwhile CME quoted S&P 500 futures Contract Equity Index price at 2000. Three months later, when the manager closes out the position, the contract is trading at 2,058 whereas the S&P 500 Index stands at 2100. One index point worth $250. Calculate the net worth for the value of investment three months later.