Question: Hello! I need help on this question, could you please show me the calculations too. Thank you very much!!! Portfolio A & B are created
Hello! I need help on this question, could you please show me the calculations too. Thank you very much!!!
Portfolio A & B are created on 16 September 2021 (RISK MANAGEMENT)
Portfolio A
Amazon.com Inc (AMZN)
No. of Shares:64 Basis(Price):$3475.79
Apple Inc. (AAPL)
No. of shares:1191 Basis(Price):$149.03
Portfolio B
Tesla Inc. (TSLA)
No. of Shares:386 Basis(Price):$755.83
Moderna Inc. (MRNA)
No. of Shares:797 Basis(Price):$434.46
NVIDIA Corp. (NVDA)
No. of Shares:699 Basis(Price):$223.41
Microsoft Corp. (MSFT)
No. of Shares:675 Basis(Price):$304.82
Question
Hedging using Futures:
1)On Tuesday, 21 September 2021, how will you use the E-Mini S&P 500 Future contract to hedge your Portfolio B position against a possible market decline? Provide calculation as necessary.
2)Provide a review of your hedging strategy based on the comparison between the portfolio performance with hedging and the portfolio performance without hedging for the holding period between Tuesday, 21 September and Friday, 1 October 2021.
Portfolio A & B are my initial portfolio with the number of shares and price bought at stated. Thank you. *Hi all my initial portfolio is portfolio A & B as shown at the start of the question. Thank you*
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