Question 8 4 points Save: A company has a $10 million portfolio with beta of 1.2. How can it use the SP500 futures contract (with a multiplier of 500) to create an optimal hedge against a stock decline and what is the hedged return? The futures index is 1000. Short 20 SP500 futures contracts for a risk-free return while hedged O Short 24 SP500 futures contracts for a risk-free return while hedged Short 20 SP500 futures contracts for a return of 0% while hedged Short 24 SP500 futures contracts for a return of 0% while hedged Question 9 4 points Suppose that the T-Bond futures price is 101-12. The following information is given about four bonds. Bond Cash Price Conversion Factor 1 125-05 1.2131 2 142-15 1.3792 3 115-31 1.1149 4 144-02 1.4026 Which of the four bonds would be the cheapest to deliver? Bond 4 Bond 3 Bond 2 Bond 1 Question 10 4 points Saved In March, June, September, and December of a given year, the number of T-Bill auctions where an auctioned T-Bill could potentially be delivered into a maturing T-Bill futures contract is 2 8 1 4