Unsure on how to Calculate the number of contracts required for a option strategy (using strike prices and total premium costs).

do i hedge the total 500m?

Section III (25%) (e) Propose ONE option spread strategy that involves more than one option contract for the Sterling Equities (500m), for all price risk faced by this portfolio. Apple's management has expressed a desire to retain some of the upside benefits that hedging with options can permit but without paying a lot of money in option premiums. That is, your recommended strategies should provide a "reasonably effective" hedge but keep the option premium payment limited to a "reasonable amount" (it does not have to be zero!). As the strategist, it is up to you what you consider "reasonable" for this purpose. You must also describe the benefits and possible shortcomings of your proposed option strategies. You must use actual option data to illustrate your option strategies