Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
It is July 16th. A company has a portfolio of shares values at $100 million. The beta of the portfolio is 1.
It is July 16th. A company has a portfolio of shares values at $100 million. The beta of the portfolio is 1.2, and the company would like to use the CME December futures contract on the the S&P 500 to change the beta of the portfolio to .5 during the period July 16th to November 16th. The index is currently 1,000, and the contract is on $250 times the index. What position should the company take?If the required beta were to be 1.5, what position in futures should be taken?
