Description and Instructions
Let us revisit your portfolio that you developed in Portfolio Report #3. Now let’s assume that you are worried about current geopolitical tensions and the possibility of a quick 10% correction. Looking at your company’s exposure develop a hedging strategy. Describe how you would position your portfolio and please include the following:

What exposures do you think are the most at risk in your portfolio?
What derivative instruments and/or strategies would you employ and why?
Take into consideration costs, liquidity and scalability
What calculations were employed to create the hedge?
What would be the portfolio losses for a range of underlying market moves
What risks can you not hedge?
Submission details and Grading