What is the hedged value of your portfolio

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Reference no: EM131543348

You own the following stock portfolio:

Stock Market Value Beta

A $452,250 1.58

B $1,374,500 1.17

C $1,582,000 1.21

D $693,750 1.42

E $576,415 1.27

F $781,824 1.38

G $638,724 1.31

You want to hedge the profit built up in this portfolio until September 30th. You have decided on the HLW 750 index futures as the appropriate hedging instrument. The November contract is quoted at 1487.62 (contract size is $325 times price). State the size and type of futures position to hedge this portfolio. If on September 30th the market value of your A holdings is $378,428, B is $1,218,635, C is $1,367,214, D is $543,768, E is $492,847, F is $643,563, G is $536,381 and the November HLW 750 index futures contract is closed at 1287.27, what is the hedged value of your portfolio on September 30th?

Reference no: EM131543348

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