1.A portfolio worth $60 million tries to hedge the exposed market risk. The value of this portfolio fluctuates by reflecting the movement of the market. Let's say the price of S&P 500 is 1200 now. If you use the index option to prevent the value of this portfolio from falling below $54 million after a year, how many put options of an exercise price should you buy?

(Please answer the appropriate number of options.)

2.A portfolio worth $60 million tries to hedge the exposed market risk. The value of this portfolio fluctuates by reflecting the movement of the market. Let's say the price of S&P 500 is 1200 now. If you use the index option to prevent the value of this portfolio from falling below $54 million after a year, how many put options of an exercise price should you buy? (Please answer the appropriate event price.)

Round to the second decimal place.