On $1$ July, Mr Brown holds $50,000$ shares of ANZB stock. The market price is AUD $30$ per share. Mr Brown is interested in hedging against movements in the market over the next month and decides to use the September ASX$/$SPI $200$ futures contract. The index is currently $4,000$ and one contract is for delivery of AUD $25$ times the index. The beta of the stock is $1\mathrm{.}3.$ What strategy should Mr Brown follow?

Question $7$Select one:

a$.$

A short position in $20$ contracts.

b$.$

A long position in $20$ contracts.

c$.$

A short position in $30$ contracts.

d$.$

A short position in $25$ contracts.