Suppose you are managing a U.S. long-only equity portfolio worth $10 million and you are concerned with a fall of equity prices. The portfolio has a beta of 1.5. S&P 500 futures are trading at 3,800 and have a contract value of $250 multiplied by the index level. To fully hedge the equity portfolio against a decline in equity prices, the portfolio manager should

a. Buy 16 S&P 500 contracts

b. Sell 16 S&P 500 contracts

c. Sell 3,800 S&P 500 contracts

d. Buy 3,800 S&P 500 contracts

Eurodollar futures for September 2020 delivery are trading today, March 25, 2019, at a price of 97.525. That price implies

a. A 3-month interest rate, starting in September 2019, of 2.475%

b. An annual interest rate, staring in September 2019, of 2.475%

c. A 3-month interest rate, starting today, of 2.475%

d. An annual interest rate, starting today, of 2.475%