You are holding a portfolio of call options on a stock. The stock's beta is 0.75, and you are concerned that the stock market is about to fall. The stock is currently selling for $5 and you hold 1 million options on the stock (i.e., you hold 10,000 option contracts for 100 shares each). The option delta is 0.8. Calculate how much in market-index futures you must buy or sell to hedge your market exposure. Calculate the P/L for a market increase or decrease of 1%. Explain why the delta of the option has to be taken into account.