PLEASE ANSWER ALL QUESTIONS

Q$3.$ When JD bought the given portfolio she decided to hedge its value for one year in case the market will fall during the year. JD used the S$\backslash$&P$500$ index futures $($on CME$)$ employing the minimum variance hedge ratio. The contract's dollar multiplier was $\backslash (\backslash$$ $250\backslash )$ and the futures value was: $\backslash ($ F$\_\{4,3,20\}\backslash )$; JUN $\backslash (21=2,912\mathrm{.}43\backslash ).$ When JD closed the futures position on $4,2,21$ the futures value was $\backslash ($ F$\_\{4,2,21$ ;$\}\backslash )$ JUN$21\backslash (=3,972\mathrm{.}84\backslash ).$

Using a complete time table show the entire hedge and describe the result of the hedge on $04\mathrm{.}2\mathrm{.}21.$

Q$4.$

Suppose now that instead of the hedge that JD opened on $4\mathrm{.}3\mathrm{.}2020$ she timed the market and speculated that the market trend is up$.$ JD used the same data in Q$3$ to increase the beta of her portfolio by $4$ points. l$.$e$.,$ Beta$($Target$)\backslash (=\backslash )$ Current portfolio Beta $+4.$

Use the S$\backslash$&P$500$ index futures to increase the beta of the JD$\text{'}$s portfolio by $4$ points and describe the result of this strategy a year later when JD closed her speculative position on $4.2.2021.$