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A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on an index is 900. Futures contracts

A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on an index is 900. Futures contracts on $50 times the index can be traded.

What trade is necessary to reduce beta to 0.9?

a. Long 192 contracts

b. Short 48 contracts

c. Long 960 contracts

d. Short 240 contracts

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