A company has a $[a]million portfolio with a beta of [b]. It would like to use futures contracts on a stock index to hedge its risk. The index futures is currently standing at [c], and each contract is for delivery of $250 times the index.

What should the company do if it wants to reduce the beta of the portfolio by 0.6?

Group of answer choices

(A) To reduce the beta by 0.6, half of this position, or a short position in half of the contracts, is required.

(B) To reduce the beta by 0.6, double of this position, or a short position in double of the contracts, is required.