An investment Advisor has a portfolio worth $60 Million with a beta of 0.75. The manager is concerned about the performance of the market over the next 2 months and plans to use 3-month futures contracts on the S&P 500 to hedge the risk. The current index level is 1,350, one contract is 250 times the index, the risk-free rate is 6% per annum and the dividend yield on the index is 3% per annum. Assume that the current 3-Month futures price is 1,300; a. The strategy should the Advisor use to hedge the exposure to market over the next 2 months? 2 Pts. Show all work b. Assuming the index in 2 months was 1,500 and the futures price was 1,504, show how effective the hedge performed?2pts. Show ALL work.