Hi Guys! I am working on the last question on my hw assignment for my derivatives and futures class and I am stuck on this one. Any help will be appreciated!


When you bought the given portfolio you have decided to hedge it for the case that the market is falling. You decided to use the S&P500 index futures on CME. This contract’s dollar multiplier was $250 and the futures value when you opened the hedge was 1,190.77.
When you closed your futures position on 4,4,09 the futures value was 1,182.44.

Using a complete time table show your entire hedge and describe the results of the hedge on 04.04.09.