Assume You have $2B of SPX (beta 1.0), the following futures contracts are available (ES). The...

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Assume You have $2B of SPX (beta 1.0), the following futures contracts are available (ES). The index is 4045. You wish to synthetically RAISE the beta to 1.8. Indices Futures Contract Specifications CURRENCIES ENERGIES FINANCIALS GRAINS INDICES LIVESTOCK METALS SOFTS Indices Contract S&P 500 E-Mini Symbol Exchange / Symbol GBLX / ES ES Trading Hours 5:00p.m. 4:00p.m. (Sun-Fri) (Settles 3:00p.m.) CST Size $50 times Index Tick Value 0.25 points ($12.50 per contract) a. How many contracts are needed? b. What is the impact to the stock portfolio if the market rises by 0.75%? c. What is the impact to the futures portfolio if the market rises by 0.75%? d. Add b and c together. e. What is the impact of the desired portfolio? ($2B X 1.8 X 0.75%) f. Subtract d- e, it should equal zero. Sun, Mar 5th, 2023 Help? Margin / Maintenance $11,660/10,600 Print Point Value $50 Assume You have $2B of SPX (beta 1.0), the following futures contracts are available (ES). The index is 4045. You wish to synthetically RAISE the beta to 1.8. Indices Futures Contract Specifications CURRENCIES ENERGIES FINANCIALS GRAINS INDICES LIVESTOCK METALS SOFTS Indices Contract S&P 500 E-Mini Symbol Exchange / Symbol GBLX / ES ES Trading Hours 5:00p.m. 4:00p.m. (Sun-Fri) (Settles 3:00p.m.) CST Size $50 times Index Tick Value 0.25 points ($12.50 per contract) a. How many contracts are needed? b. What is the impact to the stock portfolio if the market rises by 0.75%? c. What is the impact to the futures portfolio if the market rises by 0.75%? d. Add b and c together. e. What is the impact of the desired portfolio? ($2B X 1.8 X 0.75%) f. Subtract d- e, it should equal zero. Sun, Mar 5th, 2023 Help? Margin / Maintenance $11,660/10,600 Print Point Value $50