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Lynn has an equity portfolio valued at $15 million that has a beta of 1.30. She has decided to hedge this portfolio using SPX call

Lynn has an equity portfolio valued at $15 million that has a beta of 1.30. She has decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 1,602. The option delta is .53. How many option contracts must Lynn write to effectively hedge her portfolio?

137 contracts
142 contracts
175 contracts
191 contracts
230 contracts

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