A company has a $20 million stock portfolio with a beta of 4.0. It plans to hold the portfolio for one month. The current spot price of the stock market index is $4000. 1-month futures contracts on $250 times the stock index can be traded. What trade is necessary to reduce the portfolio beta to zero?

Group of answer choices

Long 80 contracts

Short 80 contracts

Long 20 contracts

Short 20 contracts