b) A superfund manager currently manages a diversified Australian shares portfolio with a value of $300 million. The manager decides to use the ASX SPI 200 index futures to hedge a forecasted decline in share prices. As an analyst in the team, you have calculated that the share portfolio requires 2100 futures contract to manage the risk exposure. Assuming S&P/ASX 200 index is currently at $5,500 and one index point is $25. (0) Explain to your manager the action your team should take in futures contracts and the total value of futures contracts [3 marks] (ii) In three months' time, the manager decides to close out the hedging position. Assuming the S&P/ASX 200 index is at $5,150 at that time. Explain how you will close out the open position and show the net valuation effect of the hedging strategy. [3 marks]