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A funds manager, Prudential Investments Limited, manages a diversified Australian share portfolio, but is concerned that stock prices in the market will fall over the next three months. The manager decides to hedge the risk by selling 100 All Ordinaries Share Price Index futures contracts at 2355. Three months later when the manager closes out the position the contract is trading at 2410. Calculate the profit or loss position of the futures transactions.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92798140

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