Now suppose you want to hedge your position in morgan, Ask an Expert

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Now suppose you want to hedge your position in Morgan Stanley stock with the S&P 500 ETF. Can we empirically delta hedge this way? Why or why not? What position do you have to take in the S&P 500? Compare and report the volatility of the hedged and un-hedged positions. Find the worst three months for the un-hedged position (in terms of returns). Compare and report the losses to the hedged and un-hedged portfolios in these months. What does this tell us about the hedging strategy?

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Category:- Financial Management
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