8. A weather derivative's HDD is defined as HDD = max(0, 65 - A). The maximum temperature during a day is 70 degrees Fahrenheit and the minimum is 40 degrees Fahrenheit what is the daily HDD? a. 10 b. 45 c. 110 d. 9 e. 25 9. Nelson and Cline Inc. holds a $10m equity portfolio with a beta of 1.2 relative to the CASH100 stock index. The CASH100 is currently trading at 4,000 points and offers a continuously compounded dividend yield of 2%. The CASH100 futures contract has a contract multiple of $10 per full index point and matures in 3 months. The current risk- free rate of interest is 3%. The futures position required for a beta hedge is: a. -120 b. -2993 C.-208 d. -2 e. -300