You own a portfolio which is valued at $12.5 million and which has a beta of 1.42.You would like to create a riskless portfolio by hedging using S&P 500 futures contracts.The contract size is $250 times the index level.How many futures contracts do you need to acquire if the current S&P 500 index is 1420?
A)short 68 contracts
B)short 50 contracts
C)long 41 contracts
D)long 57 contracts
E)short 63 contracts

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The Answer of You own a portfolio which is valued at $12.5 million and which has a beta of 1.42.You would like to create a riskless portfolio by hedging using S&P 500 futures contracts.The contract size is $250 times the index level.How many futures contracts do you need to acquire if the current S&P 500 index is 1420?
A)short 68 contracts
B)short 50 contracts
C)long 41 contracts
D)long 57 contracts
E)short 63 contracts

You Own a Portfolio Which Is Valued at $12