Lynn has an equity portfolio valued at $15 million that has a beta of 1.30. She has decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 1,602. The option delta is .53. How many option contracts must Lynn write to effectively hedge her portfolio?
A)137 contracts
B)142 contracts
C)175 contracts
D)191 contracts
E)230 contracts

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The Answer of Lynn has an equity portfolio valued at $15 million that has a beta of 1.30. She has decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 1,602. The option delta is .53. How many option contracts must Lynn write to effectively hedge her portfolio?
A)137 contracts
B)142 contracts
C)175 contracts
D)191 contracts
E)230 contracts

Lynn Has an Equity Portfolio Valued at $15 Million That