Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
On Jan 1, an investor holds 60,000 shares of a certain stock
On Jan 1, an investor holds 60,000 shares of a certain stock. The market price is $39 per share. The investor is interested in hedging against movements in the market over the next month and decides to use the March S&P 500 futures contract. The index futures price is 3,107 and one contract is for delivery of $50 times the index. The beta of the stock is 1.6. How many futures contract does he have to purchase?
If it's a short position, enter a negative number. Round your answer to the nearest integer. For example, if you answer is -12.345 contracts, then enter "-12"
Expert Solution
Need this Answer?
This solution is not in the archive yet. Hire an expert to solve it for you.





