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2. A company has $30 million portfolio with a B= 1.4. It decides to use futures contracts on the S&P500 to hedge its risk. The

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2. A company has $30 million portfolio with a B= 1.4. It decides to use futures contracts on the S&P500 to hedge its risk. The index futures is currently 1160. Each contract is for delivery of $250 times the index. (a) Find the hedge (the number of contracts) that minimizes risk. (6) How does the company reduce the 8 of its portfolio to 0.6

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