Description and Instructions
Let us revisit your portfolio that you developed in Portfolio Report #3. Now let’s assume that you are worried about current geopolitical tensions and the possibility of a quick 10% correction. Looking at your company’s exposure develop a hedging strategy. Describe how you would position your portfolio and please include the following:
What exposures do you think are the most at risk in your portfolio?
What derivative instruments and/or strategies would you employ and why?
Take into consideration costs, liquidity and scalability
What calculations were employed to create the hedge?
What would be the portfolio losses for a range of underlying market moves (-10%, -5%, 0%, 5%, 10%)
What risks can you not hedge?
Submission details and Grading
This assignment is limited to one page minimum, two pages maximum single space. The longer the assignment does not improve your grade. Conciseness, proper grammar, and organization will be 30% of the grade.
(I had upload my report#3 file here, you need to write this report 5 based on my report 3. Same company, some data.)