Explain what it means by going long in futures contract

Assignment Help Financial Management

Reference no: EM131616050

A. Explain what it means by going long in a futures contract.

B. If you go long on one S&P 500 futures contract with a market value of $500, 000, are you in effect increasing or decreasing your exposure to the stock market, and by what dollar amount?

C. If you have $500,000 investments in stock and you go short $500,000 in stock futures contract, how much do you have at risk in the market?

Reference no: EM131616050

Questions Cloud

Leases machine under noncancellable lease : Mc Inc. leases a machine under a noncancellable lease for 2 years at 1000 per month, which includes $100 per month for executory costs.

Other techniques to hedge net investments : Can you explain an little about each one Other techniques to hedge net investments

The beta be for the other stock in your portfolio : What must the beta be for the other stock in your portfolio?

New sausage system-what is the npv of project : Kolby’s Korndogs is looking at a new sausage system. If the tax rate is 30 percent and the discount rate is 6 percent, what is the NPV of this project?

Explain what it means by going long in futures contract : Explain what it means by going long in a futures contract.

Portfolio consisting of common stock : Assume you have a portfolio consisting of common stock.Calculate and show how many futures contracts are needed and state if you will go long or short.

Stock intrinsic value using dividend constant growth model : Find the stock's intrinsic value using the dividend constant growth model and the required rate of return implied by Capital Asset Pricing Model.

The amount of money she will have to invest today : If Sarah can earn 4 percent annually for the next 32 years, the amount of money she will have to invest today is $ (

Failure of nursing facility is usually measured : The financial success or failure of a nursing facility is usually measured by its: If a nursing facility borrows $10,000, which accounts are affected?

User Account

All Pages