13. A company has $10 million portfolio with beta of 1.2. How can it use the S&P500 futures contract (with a multiplier of 500) to create an optimal hedge against a stock decline and what is the hedged return? Futures index is 1000.

a. Short 20 S&P500 futures contracts for a return of 0% while hedged

b. Short 20 S&p500 futures contracts for a return risk free return while hedged

c. Short 24 S&P500 futures contracts for a return of 0% while hedged

d. Short 24 S&P500 futures contracts for a risk free return while hedged