Assume that you are managing a $120 million large cap Australian stocks covered by the ASX 200 Index. You predict that the market will experience a sizable correction (implying a sizable decline) given the overall macro-market environment.

Your considered opinion is that you need to hedge only $24 million of your portfolio

using SFE SPI 200 Index Futures. Your portfolio does not exactly track the ASX200 index and currently has a beta of 0.85.

You have also collected the following data on Australian futures market:

SFE SPI Futures Index	6814
ASX 200 Index	6813
Index multiplier	25

You are required to calculate the number of futures contracts required to hedge $24 million of your portfolio given the above information. Explain clearly whether you will sell or buy the futures contracts to protect your portfolio.