The goal of this task is to investigate how index futures can be used to minimise the market risk from holding the stock portfolio. In particular, you need to determine the number of futures contracts for the hedge and report the position in futures contracts to be taken. [15 marks] Task 1.2: Determine the outcome of the hedge on 31st August 2020, on which day the September contract was priced at 6,030. Based on this outcome, discuss whether your client regretted having the stock portfolio hedged or not?
Attachments:
5563140_1_bafi2081-assessment-3-s22020-individiual-assignment-1.pdf
5563140_2_marking-rubric-assessment-3.docx
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