Suppose the S&P 100 index closed at 541.86 and that a May 500 put has a premium of $2.50 and a delta of -0.444. You have a $1 million stock portfolio with a beta of 1.20. How many index put options contracts must you buy to fully hedge this portfolio?

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The Answer of Suppose the S&P 100 index closed at 541.86 and that a May 500 put has a premium of $2.50 and a delta of -0.444. You have a $1 million stock portfolio with a beta of 1.20. How many index put options contracts must you buy to fully hedge this portfolio?

Suppose the S&P 100 Index Closed at 541