Find the optimal stock index futures hedge ratio if the portfolio is worth $1,200,000, the beta is 1.15 and the S&P 500 futures price is 450.70 with a multiplier of 250.

a. 10.65

b. 12.25

c. 6123.80

d. 5325.05

e. none of the above

Find the optimal stock index futures hedge ratio if the portfolio is worth $2,400,000, the beta is 1.15 and the S&P 500 futures price is 450.70 with a multiplier of 250.

a. 10.65

b. 12.25

c. 24.5

d. 5325.05

e. cannot be determined