Chap 3

Hedging Strategies Using Futures Chapter 3

Long & Short Hedges ,[object Object],[object Object]

Arguments in Favor of Hedging ,[object Object]

Arguments against Hedging ,[object Object],[object Object],[object Object]

Convergence of Futures to Spot (Hedge initiated at time t 1 and closed out at time t 2 ) Time Spot Price Futures Price t 1 t 2

Basis Risk ,[object Object],[object Object]

Long Hedge ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Short Hedge ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Choice of Contract ,[object Object],[object Object]

Optimal Hedge Ratio ,[object Object],[object Object],[object Object],[object Object],[object Object]

Hedging Using Index Futures (Page 63) ,[object Object],[object Object]

Reasons for Hedging an Equity Portfolio ,[object Object],[object Object]

Example ,[object Object],[object Object],[object Object],[object Object]

Changing Beta ,[object Object],[object Object]

Hedging Price of an Individual Stock ,[object Object],[object Object],[object Object]

Why Hedge Equity Returns ,[object Object],[object Object]

Rolling The Hedge Forward (page 67-68) ,[object Object],[object Object]

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