You Own a Portfolio Which Is Valued at $6

question 86

Multiple Choice

You own a portfolio which is valued at $6.4 million and which has a beta of 1.27.You would like to create a riskless portfolio by hedging with S&P 500 futures contracts.The contract size is $250 times the index level.How many futures contracts are needed if the current S&P 500 index is 1406?

• A) short 16 contracts
• B) short 18 contracts
• C) short 23 contracts
• D) long 18 contracts
• E) long 23 contracts

Recognize the concepts related to self-determination theory, including basic human needs according to the theory.

Critically evaluate the needs and motivations influencing human behavior and personal fulfillment.

Understand the different sources of power within an organization and the context in which they are most effective.

Recognize the impact of organizational structure on decision-making authority and ethical behavior.

---

Definitions:

Active Listener

Someone who listens attentively, engaging fully with the speaker's message and providing feedback that shows understanding and interest.

Controlling Surroundings

The process of managing and manipulating the physical or social environment to achieve desired outcomes.

Receptive Mind-Set

An open and willing attitude to accept and consider new ideas or suggestions.

Technology

The application of scientific knowledge for practical purposes, especially in industry, where it involves the development and use of machinery, equipment, and software.