The manager of a blue chip growth stock mutual fund is trying to fully hedge the $650 million portfolio position for the last two months of the calendar year. The current price of the S&P 500 Index futures contract is 1,200. If the mutual fund has a beta of 1.24, how many contracts will it take to hedge the fund?

Answer rating: 100% (QA)

For hedging the fluctuation in the prices there are various financial tools ... View the full answer