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Marked portion What is the hedge position to be taken here and why?
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Hedge position = 20 lakhs in cash market(company took short position ) , Beta 0.75 ( it means if INDEX position 75 points increases , in cash market it will decrease 100 points ) so 20*0.75 = 15 lakhs is hedge position Already we had short position in cash market os we took LONG INDEX position in Futures market for mitigate risk
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