QUESTION 3: (2 points) You are the manager of a pension fund that is index to the S&P 500 and has a beta of 1.00. You will receive $20 million from the fund sponsor next month, which you plan to invest in the fund's portfolio and buy S&P 500 shares. The current beta of this contribution is zero. You expect that the stock prices will increase substantially until then. There is a futures contract on the S&P 500 Index, and its size is $250 times the value of the index. The current futures price is $2000 and its beta is 1.00. Design the optimal hedge of this contribution. QUESTION 3: (2 points) You are the manager of a pension fund that is index to the S&P 500 and has a beta of 1.00. You will receive $20 million from the fund sponsor next month, which you plan to invest in the fund's portfolio and buy S&P 500 shares. The current beta of this contribution is zero. You expect that the stock prices will increase substantially until then. There is a futures contract on the S&P 500 Index, and its size is $250 times the value of the index. The current futures price is $2000 and its beta is 1.00. Design the optimal hedge of this contribution