Question: (ii)How Many Contracts Must The Hedger Use To Have A Precise Hedge? Calculate The Net Profit/loss Made Due To The Hedging.

Question: (ii)How Many Contracts Must The Hedger Use To Have A Precise Hedge? Calculate The Net Profit/loss Made Due To The Hedging.

(B) Based on the scenario below, answer the following questions. Stock Market Futures Market June 2020 CI @ 1620.00 Short Nov(ii)How many contracts must thehedger use to have a precise hedge? Calculate the net
profit/loss made due to the hedging.

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(B) Based on the scenario below, answer the following questions. Stock Market Futures Market June 2020 CI @ 1620.00 Short November KLCI futures contract @ Holds portfolio valued at RM5 million with 1610.00 beta of 0.7 November 2020 CI has dropped 3%. Close out the November KLCI futures
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