The S&P 500 Index is currently at 1,000. You manage a $4 million indexed equity portfolio. The S&P 500 futures contract has a multiplier of $50. 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?

b. If T-bills pay 1.0% per six months and the semiannual dividend yield is 1.0%, what is the parity value of the futures price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

13 The S&P 500 Index is currently at 1,000. You manage a $4 million indexed equity portfolio. The S&P 500 futures contract has a multiplier of $50. 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? 10 points Number of contracts 80 X This is a numeric cell, so please enter numbers only. eBook Print b. If T-bills pay 1.0% per six months and the semiannual dividend yield is 1.0%, what is the parity value of the futures price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) References Parity value