How many contracts should you sell to fully eliminate your


The S&P 500 Index is currently at 1,250. You manage a $15 million indexed equity portfolio. The S&P 500 futures contract has a multiplier of $250. a. If you are temporarily bearish on the stock market, how many contracts should you sell to fully eliminate your exposure over the next six months? Number of contracts b. If T-bills pay 2.4% per six months and the semiannual dividend yield is 1.2%, what is the parity value of the futures price? (Round your answer to 2 decimal places. Do not round intermediate calculations.) Parity value

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Financial Management: How many contracts should you sell to fully eliminate your
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