A portfolio manager wants to hedge a stock portfolio with a value of $750 million and a beta of 1.25 with S&P Canada 60 index futures. The quoted price of a six-month futures contract is 1,437.25, and the contract multiplier is $200. How many futures contracts are needed for the hedge?
A) 2,431
B) 3,261
C) 2,527
D) 2,609
E) 2,496

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The Answer of A portfolio manager wants to hedge a stock portfolio with a value of $750 million and a beta of 1.25 with S&P Canada 60 index futures. The quoted price of a six-month futures contract is 1,437.25, and the contract multiplier is $200. How many futures contracts are needed for the hedge?
A) 2,431
B) 3,261
C) 2,527
D) 2,609
E) 2,496

A Portfolio Manager Wants to Hedge a Stock Portfolio with a Value