You want to hedge a stock portfolio with a value of $325 million using a S&P 500 index futures contract that is currently quoted at 1,286.50. The multiplier of the contract is $250. If the beta of the portfolio is 1.15, how many futures contract are needed?
A) 1,162
B) 987
C) 1,043
D) 931
E) 1,087

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The Answer of You want to hedge a stock portfolio with a value of $325 million using a S&P 500 index futures contract that is currently quoted at 1,286.50. The multiplier of the contract is $250. If the beta of the portfolio is 1.15, how many futures contract are needed?
A) 1,162
B) 987
C) 1,043
D) 931
E) 1,087

You Want to Hedge a Stock Portfolio with a Value