An investor's portfolio with a beta of 1.25 is worth $1 million. The current S&P500 price is $1500. The current price on the S&P500 futures (each contract is on $250 times the index) is $1800. How many futures contracts will the investor need and what position will he/she take to completely hedge away the market's impact on the portfolio?

A. Long 3 S&P500 futures contracts

B. Short 3 S&P500 futures contracts

C. Long 3 shares of the S&P500 Index

D. Short 3 shares of the S&P500 index

Continued from Previous Question: An investor's portfolio with a beta of 1.25 is worth $1 million. The current S&P500 price is $1500. The current futures price on the S&P500 (each contract is on $250 times the index) is $1800. Next period, the S&P500 is priced at $1250 and the futures price on the index is $1500. What is the final value of the portfolio after the hedging process? Enter numeric value.

Continued from previous question: Did the investor succeed in using hedging to make the beta of the portfolio exactly 0? YES/NO

(I would really appreciate if you could explain answer and show work, thank you in advance)