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Create an intermarket hedge betting

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Create an intermarket hedge betting that technology stocks will outperform finance stocks from now until August. Technology stock futures with September delivery date are currently trading at 650 and have a beta of 2. Finance stock futures with a September delivery date are currently trading at 209 and have a beta of 0.9. What is your profit on August 15th if you close out your positions with Technology futures at 703 and finance futures at 192? Both futures have a $100 multiplier.

Provide your answer rounded to two decimals.

Reference no: EM133058500

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