Suppose that JPMorgan Chase sells call options on $1.25 million worth of a stock portfolio with beta

Question:

Suppose that JPMorgan Chase sells call options on $1.25 million worth of a stock with beta = 1.5. The option delta is .8. It wishes to hedge out its resultant exposure to a market advance by buying a market index How many dollars worth of the market index should it purchase to hedge its position?
b. What if it instead uses market index puts to hedge its exposure? Should it buy or sell puts? Each put option is on 100 units of the index, and the index at current prices represents $1,000 worth of stock.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...