Portfolio Performance And Hedging Options

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Portfolio Performance and Hedging options Cheuk Yin Lam 6865175 Introduction This is an equity fund manager tasked with the responsibility of managing a portfolio. The portfolio comprises of largest UK stocks and thus bases the FTSE100 index (Battalio and Schultz 2011, Pp 45). There is much concern that sharp correction in equities might take place in the next 3 month. The main purpose of this report is to present the hedging choices that they have. Portfolio Setup a. Price Data (for index and futures) Price data in this case is between 11/05/2016 to 22/05/2016 Data below is an indication of the price index and futures for the company Date Price Open High Low Vol. Change % May 20, 2016 2050.00 2038.75 2055.50 2037.25 -…show more content…
Risks faced and hedging Research has shown that there are a number of
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