n NISM Certifications
XIII NISM Series XIII
Medium

A portfolio has a beta of 1.3, and its value is Rs 9,00,000. The benchmark index is at 8000, and the futures contract lot size is 75. How many contracts are needed for a good hedge?

Practice question from NISM Series XIII for SIF - Mock Test 8 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    5 contracts

  2. B

    4 contracts

  3. C

    3 contracts

  4. 2 contracts

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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