The manager of a blue chip growth stock mutual fund is trying to fully hedge the $650 million portfolio position during the last two months of the calendar year. The current price of the S&P 500 Index futures contract is 1200. If the mutual fund has a beta of 1.24, how many contracts will be needed to hedge the fund?

A) 1,083

B) 3,033

C) 242,963

D) 541,666

Answer: B (Help needed with calculations)