On January 15, a company has a stock portfolio worth $150 million. The beta of the portfolio is 1.3. The company would like to use April futures contract on a stock index to change the beta of the portfolio to 0.5 during the period January 15 to April 15. The index futures price is 2500 and each contract is on $250 times the index. a) What position should the company take? b) Suppose that the company changes its mind and decides to increase the beta of the portfolio from 1.3 to 1.5 What position in futures contracts should it take