A $7,480,000 portfolio has a beta of 1.25. The E-mini S&P 500 Futures contract currently trades for 3,400 and the contract size is $50 times the index. Answer the following questions.

a) If you want to create a risk-free portfolio using the E-mini S&P 500 futures (i.e. eliminate all systematic risk), how many futures contracts should you enter in total? Long or short?

Number of contracts:

Position [enter "long" or "short"):

b) If you use the E-mini S&P 500 futures contracts to change the portfolio beta to 1.75, how many futures contracts should you enter in total? Long or short?