Case Problem 15.2 Jim and Polly Pernelli Try Hedging with Stock Index Futures ?
Case Problem 15.2 Jim and Polly Pernelli Try Hedging with Stock Index Futures? The Pernellis might decide to set up the hedge by using futures options instead of futures contracts. Fortunately, such options are available on the S&P MidCap 400 Index. These futures options, like their underlying futures contracts, are also valued/priced at $500 times the underlying S&P 400 Index. Now, suppose a put on […]