Blue chip growth stock mutual fund

Reference no: EM131040001

The manager of a blue chip growth stock mutual fund is trying to fully hedge the $650 million portfolio position during the last two months of the calendar year. the current price of the S&P 500 Index futures contract is 1200. If the mutual fund has a beta of 1.24 how many contracts will be needed to hedge the fund?
a) 541,666
b)2,686
c)242,963
d)1,083

Reference no: EM131040001

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