You are given the following information about a portfolio you are to manage. For the long-term you are bullish, but you think the market may fall over the next month.

Portfolio Value $1million

Portfolio's Beta 0.86

Current S&P500 Value 990

Anticipated S&P500 Value 915

1. What is the dollar value of your expected loss? A. $142,900 B. $65,200 C. $85,700 D. $30,000 E. $64,200

2. How many S&P contracts should you buy or sell to hedge your position? (Not the e-mini but the standard S&P 500 contract) Allow fractions of contracts in your answer. A. sell 3.477 B. buy 3.477 C. sell 4.236 D. buy 4.236 E. sell 11.235