What strategy should the investor follow

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On July I. an investor holds 50,000 shares of a certain stock. The market price is 530 per share. The investor is interested in hedging against movements in the market over the next month and decides to use the September Mini S&P 500 futures contract. The index is currently 1,500 and one contract is for delivery of 550 times the index. The beta of the stock is 1.3. What strategy should the investor follow?

Reference no: EM131404160

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