Question
 A trader wants to hedge their portfolio, which has a
value of 20,00,000 by using S&P 500 futures contracts. The current price of one S&P 500 futures contract is $2,500, and the trader wants to achieve an 80% hedge. How many S&P 500 futures contracts should the trader buy or sell to achieve this hedge?Solution
We need 80% hedging of 20,00,000 value i.e., 16,00,000 Number of contracts = (Value to Hedge) / (Contract Size) Number of contracts = ($16,00,000) / ($2,500) = 640 contracts
As the degree of product differentiation increases among the products sold in a monopolistically competitive industry, which of the following occurs?
New loans made = 1000. Fractional reserve ratio is 1/3, by how much deposits will grow?
Umar has the utility function U(b,w) = min (b,w) and Akshat has the utility function U(b,w) = bw. If we draw an Edgeworth box with b on the ho...
Which one of the following is not an assumption of Marshall’s Cardinal Utility Analysis ?
If the sum of the product of the deviation of X and Y from their means is zero, the correlation coefficient between X and Y is:
In a market economy
Based on the sticky-price model, the short-run aggregate supply curve will be steeper, the greater the_____
  Consider the following production function
Y = F(K,AL) = K1/3(AL)2/3
Calculate the Golden state level of capita...
If, C = 250 + 0.5 (Y-T) , I = 250-500i, i=0.1 and G=T= 300. What will be the equilibrium level of income?
By _____________ economists refer to an unanticipated inflation that reduces the real value of outstanding government debt.
