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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
EFE Asset Managers are administering a well diversified equities portfolio valued at $20m as at january 8,2014.the local market is likely to be bearish in the forth coming months and the fund managers do not want to be exposed to the berish trend. The current level of the main index is 5950 and July 2014 put and call options are available at 5942 and 5965 respectively. Each index is worth $10 and premiums on puts and calls are 4.5% and 4% respectively. The beta of the portfolio is 1.05.
Fund managers at EFE Asset managers are not in agreement with each other, Fund manager A is arguing for a hedge while Fund manager B is of the opion that a hedge is not necessary. The main index falls to 5206 between January and July.
With the aid of relevant and clear calculations ,show your support for either Fund manager A or Fund Manager B.
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