Approximately How Many TSX 60 Futures Contracts Are Needed to Hedge

question 40

Multiple Choice

Approximately how many TSX 60 futures contracts are needed to hedge a portfolio constructed of 4500 shares of each of the three stocks,X,Y and Z against a 20 point movement in the TSX?

• A) 5
• B) 3
• C) 4
• D) 2
• E) none of these

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