thommo77

Hi Jbaphna,

Thnx for this. But I still dont get it.

I get point 1, if you have cash or Tbills that you want to equitize, we find the FV to get the contract #s.

But for the 2nd point, are you saying to when they ask you to hedge away market risk, they are not asking you to monetize? ie the result is a risk free asset. Or are you saying that they will need to specifically ask you to create synthetic cash, or else use the beta equation. Thanks.