You hold a stock portfolio worth $15 million with a beta of 1.05. You would like to lower the beta to 0.90 using S&P 500 futures, which have a price of 460.20 and a multiplier of 250. What transaction should you do? Round off to the nearest whole contract.

a. sell 130 contracts

b. sell 9,778 contracts

c. sell 20 contracts

d. buy 50,000 contracts

e. sell 50,000 contracts

You hold a stock portfolio worth $30 million with a beta of 1.05. You would like to lower the beta to .90 using S&P 500 futures, which have a price of 460.20 and a multiplier of 500. What transaction should you do? Round off to the nearest whole contract.

sell 130 contracts

sell 9,778 contracts

sell 20 contracts

buy 50,000 contracts

sell 50,000 contracts