Manager of the jane eyre investment fund

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You are the manager of the Jane Eyre Investment Fund. On 12 July, you receive notice that the fund will be sold on 30 August. The fund comprises a diversified portfolio of listed Australian shares. It is currently valued at $10 million. On 12 July, the S&P/ASX Index was 6350 and you hedged this risk by selling 64 September SPI 200 futures at a contract price of 6325. On 28 August, the S&P/ASX Index was 5335 and the contract price of the September SPI 200 futures contract was 5325. The value of the portfolio had fallen to $8.6 million.

Reference no: EM132569414

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