You have been assigned to implement a three-month hedge for a stock mutual fund portfolio that primarily invests in medium-sized companies. The mutual fund has a beta of 1,15 measured relative to the S&P Midcap 400, and the net asset value of the fund is $200 million. Should you be long or short in the futures contracts? Using the quotations in Figure 16.1 for the March contract, determine the appropriate number of futures to use in designing your cross-hedge strategy.