Question 1 Allison
From CFAI 2014 mock exam (the Litman version or version C)
how can we tell from the passage that she sold “25” futures contracts? I can’t see anywhere in the passage or the question that suggests 25 futures contracts. Please advise how to compute this 25! Thanks.
I think I remember this question, it says 25 December future contracts, it makes it confusing because it seems like it says 25th december future contracts but its actually means he is buying 25 future contracts
Yes I thought it meant Xmas day (25th December) as well!
the wording in the question is clearly wrong and doesn’t make sense!!
it reads “To reduce the beta, Allison sold NASDAQ 100 futures contracts at $124,450 on 25 December.”
He was Selling (not Buying) futures contracts btw
yea i agree it wasnt clear at all. pretty fustrating if you ask me