Question: Please answer this question. Thank you! 2. [10 points] You are holding call options on a stock. The stock's beta to the market is .75,

Please answer this question. Thank you!

2. [10 points] You are holding call options on a stock. The stock's beta to the market is .75, and you are concerned that the stock market is about to fall. The stock is currently selling at $50, and you hold 1 million options on the stock. The option delta is .8. How many market index itures contracts must you buy or sell to hedge your market exposure between now and the option expiration date if the current value of the market index is 1,000 and the contract multiplier is $250? The itures contract and the options mature on the same day

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