stock-index-futures

Learning objectives: Distinguish between the forward price and the value of a forward contract. Calculate the value of a forward contract on a financial asset that does or does not provide income or yield. Explain the relationship between forward and futures prices. Calculate the value of a...

Learning objectives: Calculate the profit and loss on a short or long hedge. Compute the optimal number of futures contracts needed to hedge an exposure and explain and calculate the “tailing the hedge” adjustment. Explain how to use stock index futures contracts to change a stock portfolio’s...

Learning objectives: Describe how hedging activities take place in practice, and describe how scenario analysis can be used to formulate expected gains and losses with option positions. Describe how portfolio insurance can be created through option instruments and stock index futures Questions...

This is part of the prompt of an FRM problem, A portfolio manager for a large-cap growth fund knows he will be receiving a significant cash investment from a client Within the next month and wants to pre-invest the cash using stock index futures. I don't really understand the prompt, basically...