Indexed equity portfolio, The S&P 500 Index is currently at

Indexed equity portfolio

Assignment Help Financial Management

Reference no: EM132034598

The S&P 500 Index is currently at 1,600. You manage a $24 million indexed equity portfolio. The S&P 500 futures contract has a multiplier of $250. a. If you are temporarily bearish on the stock market, how many contracts should you sell to fully eliminate your exposure over the next six months? Number of contracts b. If T-bills pay 1.5% per six months and the semiannual dividend yield is 1.4%, what is the parity value of the futures price? (Round your answer to 2 decimal places. Do not round intermediate calculations.) Parity value

Reference no: EM132034598

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