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How much does the futures position change

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Reference no: EM132593406

You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month:

Portfolio Value: $1M

Portfolio's Beta: .86

Current S&P500 Value: 990

Anticipated S&P500 Value: 915

Question 1: For a 75-point drop in the S&P 500, by how much does the futures position change?

A. $500,000

B. $18,750

C. $200,000

D. $50,000

E. $250,000

Reference no: EM132593406

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