Optio

University of Strathclyde
Glasgow

Department of Accounting and Finance

M.Sc. Investment and Finance 2011/2012
Equity Futures A portfolio analysis

Date of Submission: 16th February 2012

TABLE OF CONTENTS

1. Introduction..................................................................................................3
2. initial locate 18th January.......................................................................4
3. Increasing the market assay by 40%...............................................................8
4. Marking to market 18th January to 1st February......................................11
5. reckon the rate of return......................................................................16
6. Considering a different scenario.................................................................19
7. Hedging the specific risk of shares.............................................................21
8. Conclusion..................................................................................................24
References........................................................................................................25

1.



INTRODUCTION
Future contracts are wontd by speculators, hedgers and arbitrageurs. Speculators speculate on the market in order to profit themselves by taking high risks. This is done, by forecasting future prices with the use of proficient analysis. On the contrary, hedgers are those who fear that prices will move against their position and hence they hedge to eliminate losses. Finally arbitrageurs use futures in order to benefit themselves from market disequilibrium, hence making safe profits.
This report seeks to demonstrate different hedging strategies through the use of futures. By using futures an investor will be able to happen upon different sets of objectives for a portfolio over a given occlusive of time. For the purpose of this report the fund manager is...If you want to astonish a full essay, order it on our website: Ordercustompaper.com



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