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The S&P 5 0 0 Index is currently at 2 , 0 0 0 . You manage a $ 2 1 million indexed equity portfolio.

The S&P 500 Index is currently at 2,000. You manage a $21 million indexed equity portfolio. The S&P 500 futures contract has a multiplier of $50.
Required:
a. If you are temporarily bearish on the stock market, how many contracts should you sell to fully eliminate your exposure over the next six months?
Number of contracts
b. If T-bills pay 2.0% per six months and the semiannual dividend yield is 1.8%, what is the parity value of the futures price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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