4 (B) On 1st January 2023, an investor has portfolio of Rs 1 Crore with a portfolio beta of 0.8. while the prices of nifty spot and nifty future are shown below: Stock Nifty spot Nifty July Futures Lot size 17450 17400 50 shares The investor fears a fall in the market below 17000 in the near future. Accordingly, he approaches you for advice. You are required to guide the investor to protect his portfolio by answering the following questions. a. Determine the number of futures contracts the investor should trade if he desires to reduce the beta of his portfolio to 0 using nifty futures b. Measure the effectiveness of the hedge if after 10 days Nifty falls to 16350 but portfolio falls down by 5%. Explain the reason of hedge ineffectiveness, if any Price How this hedge can be taken using options in a cost effective way given a call of 17800 is available at Rs 50 and a put strike price 17000 is available at Rs 60 8 marks 4 Marks