Find the Optimal Stock Index Futures Hedge Ratio If the Portfolio

question 5

Multiple Choice

Find the optimal stock index futures hedge ratio if the portfolio is worth $1,200,000,the beta is 1.15 and the S&P 500 futures price is 450.70 with a multiplier of 250.

• A)10.65
• B)12.25
• C)6123.80
• D)5325.05
• E)none of the above

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Definitions:

Eating Disorder

A range of psychological disorders characterized by abnormal or disturbed eating habits, such as anorexia nervosa or bulimia nervosa.

IPV

Intimate Partner Violence, a type of domestic violence that occurs between partners in an intimate relationship, encompassing physical, sexual, and emotional abuse.

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Individuals who have suffered harm, injury, or injustice due to the actions or negligence of others.

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Individuals who commit an act, especially a crime or some other harmful deed, often used in the context of domestic violence, sexual assault, and criminal activities.