USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 103

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider a portfolio manager with a $10,000,000 equity portfolio under management. The manager wishes to hedge against a decline in share values using stock index futures. Currently a stock index future is priced at 1350 and has a multiplier of 250. The portfolio beta is 1.50.
-Refer to Exhibit 15.13. Calculate the overall profit.

• A) -$50,000
• B) -$150,000
• C) $50,000
• D) $150,000
• E) $550,000

---

Definitions:

Vitamin B-1

Also known as thiamine, a nutrient essential for glucose metabolism and the functioning of the nervous system.

Korsakoff's Syndrome

A chronic memory disorder typically caused by severe deficiency of thiamine (vitamin B1), often associated with chronic alcoholism.

Memory Problems

Issues or impairments in the ability to recall or retain information, impacting daily functioning and activities.

Korsakoff's Syndrome

A chronic memory disorder often associated with alcoholism, characterized by short-term memory loss, making up stories (confabulation), and repetition.