Must use all of the criterias and information in the question to solve the question thanks.

A mutual fund currently has $50M in Hang Seng index and $50M in one-year zero-coupon bonds. Assume that the one-year interest rate is 6% (annually compound). Assume that the current quote on the Heng Seng index is 1,125, each futures contract is written on 250 units of the index and the dividend yield on the index is approximately 3% per year, i.e., $1,000 invested in the index yields $30 in dividends at the end of the year.

If this mutual fund decides to switch to a 70/30 stock/bond mix ($70M in Heng Seng index and $30M in one year zero-coupon bonds) for a period of one year,

b) i)how would you implement this strategy using Heng Seng index futures? How many contracts with one year to maturity would you need?

ii) Assume that the index finishes the year at 1,200, describe the plan's portfolio in one year and one day from now (right after the futures expire). What is the stock/bond mix?