Would you go short or long on the futures contract

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Reference no: EM13942978

Your stock portfolio is worth $10M with a beta of 1.1. The spot price of S&P 500 is 950. Each S&P 500 contract is for $250 per index points. To protect against the market decline

a. How many futures contract should you need?

b. Would you go short or long on the futures contract

Reference no: EM13942978

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