You manage a share portfolio currently worth $250m Australian dollars. The beta of this portfolio is 1.25. Index put options trade on the S&P/ASX200 index with a strike price of 6900. Calculate the number of index put options required to fully hedge this share portfolio. Note that S&P/ASX200 index options have a standard multiplier of $10. Round your answer to the nearest whole number.

You manage a share portfolio currently worth $250m Australian dollars. The beta of this portfolio is 1.25. Index put options trade on the S&P/ASX200 index with a strike price of 6900. Calculate the number of index put options required to fully hedge this share portfolio. Note that S&P/ASX200 index options have a standard multiplier of $10. Round your answer to the nearest whole number.

Additional question Your client, Macquarie Holdings, holds a large portfolio of investments in shares of other entities, approximately 80% of them being listed on the Australian Stock Exchange (ASX). Approximately 800 parcels of shares are held at any time.The following data on each share parcel is maintained on the share investment master file.Investment identification numberDate purchasedDate soldInvestee nameTotal number of shares purchasedNumber of shares soldNumber of shares currently heldInvestment cost for shares currently heldYear-end market value of shares heldProfit/loss on saleDividend income for the periodDividend income to dateThe above data is maintained on the IT system for a period of five years.Required:Identify the two (2) key assertions the auditor will need to address for ‘share investments’ account balance.Discuss how generalised audit software (GAS) other than exception reports, could assist in the audit of these investments for each of the assertions identified in (a) above. Provide an example of an exception report the auditor might create to gather evidence on the two assertions identified in (a) above.Outline one (1) practical programmed application control that you would expect to find in Macquarie Holding’s share investment master file.                                                                           Your answer to parts (a) and (b) should be presented in the following format.AssertionUse of GAS to Assist in the Audit1. 2.

You invest $600 in a security with a beta of 1.2 and $400 in another security with a beta of 0.90. The beta of the resulting portfolio is a. 1.04b. 1c. 0.98d. 1.70

A company has a $36 million equity portfolio with a beta of 0.9. The futures price on the S&P index for a contract delivering in 6 months is currently trading at 900. Futures contracts on $250 times the index can be traded. What trade is necessary to increase the beta to 1.2 over the next 4 months?Group of answer choicesShort 48 futures contracts and close out the position in 4 monthsShort 48 futures contracts and close out the position in 6 monthsShort 192 futures contracts and close out the position in 6 monthsLong 48 futures contracts and close out the position in 4 monthsLong 48 futures contracts and close out the position in 6 months

Suppose there are 5 stocks with the following betas:βA= 0.5, βB= 1.2, βC= 0.6, βD= 1, βE= 0.8A portfolio manager decides to invest £100,000 in a portfolio comprising these 5 stocks as follows:A = £20,000, B = £10,000, C = £25,000, D = £15,000, E = £30,000What is the beta of the portfolio?