A company has a portfolio that worth 10 million dollars, and with a beta 1.2. The level of S&P500 index is currently 900 and one futures contract is on 250 times the index. Suppose that risk-free rate is 4% per annum continuously compounded, and the index pays dividends at a rate of 2% per annum 1) How can the company use futures contracts on the S&P500 to completely hedge its risk (systematic risk) over the next six months? 2) What position should it take to reduce the beta of the portfolio to 0.3