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Hedging Apollo

The document shows the results of Apollo Tyres hedging their long position in the spot market of 222 units with a short position in the futures market of 230 units over a period of 10 days. Each day it lists the market price, and the profit/loss of the long and short positions as well as the net profit/loss, which remained steady at 3.65. A line graph is given comparing the market price to the net profit/loss over time.

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Anish Tirkey 1910125
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69 views3 pages

Hedging Apollo

The document shows the results of Apollo Tyres hedging their long position in the spot market of 222 units with a short position in the futures market of 230 units over a period of 10 days. Each day it lists the market price, and the profit/loss of the long and short positions as well as the net profit/loss, which remained steady at 3.65. A line graph is given comparing the market price to the net profit/loss over time.

Uploaded by

Anish Tirkey 1910125
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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APOLLO TYRES

hedging with futures


long (spot market) 222
short (derivative market) 230 4.35

Date Market price Long p/l short p/l net p/l Market price
11/18/2021 220 -2 5.65 3.65 220
11/17/2021 245 23 -19.35 3.65 245
11/16/2021 260 38 -34.35 3.65 260
11/15/2021 232 10 -6.35 3.65 232
11/12/2021 234 12 -8.35 3.65 234
11/13/2021 243 21 -17.35 3.65 243
11/14/2021 248 26 -22.35 3.65 248
11/15/2021 247 25 -21.35 3.65 247
11/16/2021 260 38 -34.35 3.65 260
11/17/2021 233 11 -7.35 3.65 233

Hedging with Futures


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net p/l Market price


APOLLO TYRES

hedging with options

long positi 222


short posit 230 17.05
Long Put Excersise Price Premium
Date Market priLong p/l short p/l net p/l
11/18/2021 225 3 0.65 3.65
11/17/2021 227 5 -1.35 3.65
11/16/2021 228 6 -2.35 3.65
11/15/2021 228 6 -2.35 3.65
11/12/2021 230 8 -4.35 3.65
11/13/2021 233 11 -4.35 6.65
11/14/2021 235 13 -4.35 8.65
11/15/2021 237 15 -4.35 10.65
11/16/2021 245 23 -4.35 18.65
11/17/2021 250 28 -4.35 23.65

Chart Title
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Market price net p/l


9 10

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