7. You are a fund manager in charge of a 50-million-dollar portfolio. Your portfolio has a beta of 1.25 relative to the S&P500. The S&P500 Index is currently 3,942. One S&P500 futures contract has a value of $250 * the index level. (1.00 points) (a) Assume you want to remove S&P500 risk from your portfolio. Do you use long or short contracts? (b) What is the optimal number of S&P500 futures contracts that you need to remove all S&P500 risk from your portfolio?