Suppose that Scotia Capital sells call options on $ 1.25 million worth of a stock portfolio with

Question:

Suppose that Scotia Capital 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 market index futures contracts. If the current value of the market index is 1,000 and the contract multiplier is $ 250, how many contracts should it buy?
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...