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Your stock portfolio has a beta of 1.30 and is currently worth $20m. The S&P/ASX200 index is currently priced at 3540. The December-2009 maturity SP1200

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Your stock portfolio has a beta of 1.30 and is currently worth $20m. The S&P/ASX200 index is currently priced at 3540. The December-2009 maturity SP1200 futures contract is quoted at 3560. How many SP1200 futures contracts are required to fully hedge your stock portfolio? Round your answer to the nearest whole number. 292 contracts a) b) c) d) 225 contracts 7344 contracts 294 contracts 7303 contracts

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