QUESTION 25 Problem #2) Ms. Smith owns a large amount of the S&P 500 Index ETF (SPY) in her retirement portfolio. She believes over the next nine months there is a strong probability that the S&P 500 could drop significantly. To hedge her investment, she Sells to Open' 5 September S&P 500 Futures Contracts with a strike price of 53,100 Answer the following questions: 3) After the first day the contracts are opened, the S&P 500 closes at $3,075. a) What is the gain / loss on the contracts for the day? b) Would the daily price change result in positive or negative cash flow to the portfolio? (Hint: It has to be one or the other) A $30,750, Negative B. $31,250, Positve C331,250, Negative D.330,750, Positive