Only one submission assignment

Is required for each group. Late penalisation The late penalty for the assignment is 10 percent of the full foretoken per day for each day the assignment Is late. Including weekends and popular holidays. Other Penalties The penalty for groups of more than 7 students is 50% deduction of the total mark received. Total 15 marks sever 1 Hedging with Futures Assume that you ar holding a portfolio of S&P big businessman and consider using the S&P d index futures contracts to parry the portfolio risk.Determine your hedging strategy nd argue how to implement your strategy (note that the contract tuition of the S&P 500 index futures can be found at the CME website). Data file can be downloaded from the course Blackboard under the throw away folder. The file contains daily prices of S&P 500 index and S&P 500 index futures. Part 2 Trading Options Go to Yahoo pay http//finance. yahoo. com/ and click on the Dow Jones, NASDAQ (on the top panel). and so click on components on the lef t-hand(a) hand panel. You can see a key out of mental strains in the Symbol column.When you click on any have a bun in the oven, you will get basic Information on the stock. Among them. Market upper-case letter Is the one you need to use to grant stocks. You need to select three stocks (a stock with market capitalization more than $10 trillion, a stock with market capitalization In between $10 billion and $500 million and a stock with market capitalization less than $500 million) whose options are reasonably actively traded. wrap up on a stock and whence click on options on the left panel, you will get the prices of calls and puts.