Modern Portfolio Managers (MPM) hold a 2.5 million dollar portfolio of stocks with a beta of.95 measured with respect to the S&P 500 index. The current value of a futures contract on the index is 1109. 3. The multiplier on the futures equals $250. If MPM wishes to increase its systematic risk in its portfolio to 1.75, how many contracts must it buy or sell? O Sell 1.4199 O Sell 7.2116 O Buy 7.2116 O Buy 354.98 O Buy 15.776 Generous Dynamics is planning on buying 12000 ounces of gold in six months. The correlation of the six-month change in the spot and futures price is . 4. The standard deviation of six-month change in spot and futures price are 11 percent and 39 percent, respectively. Futures contract size is 1000 ounces. How many contracts should GD buy or sell to hedge the future purchase? O Sell 3.3846 O Buy 1.3538 O Sell 1.3538 O Buy 17.018 O Sell 17.018 Mogul oil company will sell 6000 barrels of oil in 11 months. Suppose Mogul hedges the risk by selling futures on 6000 barrels of oil. The current oil futures price is $24.25 dollars per barrel. If in 11 months the spot price of oil is $22.75 and the futures price is $25.75 per barrel, what is Mogul's effective price of oil per barrel? o 22.75 0 24.25 O 21.25 0 25.25 0 27.25