Only one submission assignment

Is required for each group. Late Penalty The slow penalty for the assignment is 10 percent of the full mark per twenty-four hours for each day the assignment Is late. Including weekends and public holidays. Other Penalties The penalty for groups of much than 7 students is 50% deduction of the total mark received. Total 15 marks Part 1 Hedging with Futures Assume that you are guardianship a portfolio of S& angstromP index and consider apply the S&P cholecalciferol index futures contracts to hedge the portfolio risk.Determine your hedgerow strategy nd discuss how to implement your strategy (note that the contract nurture of the S&P 500 index futures can be found at the CME website). Data file can be downloaded from the melodic line Blackboard under the Project 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). The n click on components on the left panel. You can see a list of stocks in the symbol column.When you click on any stock, you will get basic information on the stock. Among them. Market Cap Is the one you need to use to strike stocks. You need to select three stocks (a stock with mart capitalization to a greater extent than $10 billion, a stock with market capitalization In in the midst of $10 billion and $500 million and a stock with market capitalization less than $500 million) whose options are reasonably actively traded. move on a stock and then click on options on the left panel, you will get the prices of calls and puts.