You Are Managing a Stock Portfolio with a Value of $50,000,000

question 13

Multiple Choice

You are managing a stock portfolio with a value of $50,000,000 and a beta of 1.15. The S&P 500 index is trading at 1,120. If the delta of the options is-0.48, how can you hedge your portfolio using put options?

• A) buy 1,070 contracts
• B) sell 1,130 contracts
• C) sell 1,070 contracts
• D) sell 1,095 contracts
• E) buy 1,130 contracts

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