How many contracts do you trade

Reference no: EM133430157

Question: It is January. You work at a hedge fund. You expect to receive approximately $14.2 million in June that you plan to invest into a diversified range of stocks. The broad market has been quite strong, of late, and you expect this to continue over coming months due to a strong economy and the flow of positive economic data.

The current price for the share price index futures contract, SHARE200, is 6245.

Each contract has a tic value of $25.00

You wish to hedge this future exposure using the maximum possible number of contracts (without exceeding the value of the expected inflow)

How many contracts do you trade?

Note: Long futures positions are a positive number, short futures positions are a negative number.

Reference no: EM133430157

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