Posted: May 26th, 2015

Forwards and Futures Strategy

All of the H.W need to be done on Excel sheet

Except the explanation parts on word.

attached is an Excel sheet that have my Transactions History which you will answer this questions based on them

• StockTrak Homework 6: Forwards and Futures Strategy
  1. Calculate transactions, including:
     1. Purchases / Sales and the reason for each transaction
     2. Instruments included and the reason for your choices
     3. Profit on sale of securities under different scenarios – with and without stop loss, cash payment, limit orders, market orders, and use of leverage
     4. Portfolio Performance this week for your stock and your hedge portfolio. Show the effects of including your selected derivatives, including futures contracts.
  2. Calculate forwards and futures strategy, including:
     1. Calculate the number of futures contracts needed to implement your trading strategy.
     2. Determine the risk-minimizing beta of your portfolio.
     3. Determine whether your hedge is a long or short hedge. Give at least two (2) reasons for your choice.
     4. Specify the extent to which your hedging strategy fully protects the portfolio. Justify your response.