What did you do to tail the hedge

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Reference no: EM131967713

Define financial economics and financial mathmatics

Assume that instead of locking out all market risk, you only want to carry half of the beta that was in your portfolio for the remainder of the year.

How many contracts should you use for your hedge 2.

Estimate the AV and AVHedged results for this position for November December Unhedged and discuss your results Now re-consider the fully hedged position (i.e., the case applied in Parts l and 2).

Suppose is a general policy at Janus to "tail" every hedge position on a monthly basis. If you tail your hedge on December 1st, what effect will this have for the overall results of the hedged portfolio?

Discuss the following: First: What did you do to tail the hedge?

Second: Describe the mechanics of your estimate for this "tailed" position. Third: How effective was this strategy in reducing risk?

Reference no: EM131967713

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