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Homework answers / question archive / 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"
