Problem 2 Mr. X currently holds 20,000 shares of a certain stock. The stock is currently trading at: $98.00 per share. He is interested in hedging against short-term movements in the market and decides to use e Mini S&P 500 futures to hedge his exposure. The Index is currently at: 3315 Contract size = $50 times index. Beta of the Stock = 0.85. Calculate how many e Mini S&P 500 futures contracts are needed to hedge the portfolio against downside price risk. Discuss your results