University Homework, hedge Citigroup, buy/sell USOil

[koukalp]

Hi guys,
I am complete newbie and I would like to ask you for help. I have home work with demo account, 50.000 USD:
1. Hedge Citigroup stocks worth 120.000 USD (bought for 50USD/stock) with SPX500, use beta coefficient
2. Currency Hedge those stocks with forex in USD/CZK - your primary account is in CZK
3. Buy/sell (it depends on your analysis) USOil with exactly 16% of 50.000USD. Maximum loss 3% of 50.000USD, limit profit 6% of 50.000 USD

So if I got things right I will have to do:
1. beta for Citigroup is 1.95, so I have to sell 114 SPX500 (1.95* 120.000/2046)
2. sell 120.000 USD for CZK
3. 0.16 * 50.000 / 40.76 = buy/sell 196 USOil, stop 0.03 * 50.000 = 1500 USD ... 1500/196 = - 7.65 + 40.76 = 33.11, limit 0.06 * 50.000 = 3000 USD ... 3000/196 = 15.31 + 40.76 = 56.07
Can you please tell me if there are any mistakes (I guess there will be, because I am newbie)?

Thank you very much in advance for every comment and your time.

 

[Enivid]

1. Looks right.
2. Right. You have exposure to 120,000 USD, so you need to sell the same amount for CZK.
3. Right if you are trading without leverage.

Which university is that?