Alex andrew, who manages a $ 95 million large-capitalization u.s.

Alex Andrew, who manages a $ 95 million large-capitalization U.S. equity portfolio, currently forecasts that equity market will decline soon.  Andrew prefers to avoid the transaction coast of making sales but wants to hedge $ 15 million of the portfolio’s current value using S&P 500 futures.
Because Andrew realizes that his portfolio will not track the S&P 500 Index exactly, he performs a regression analysis on his actual portfolio returns versus the S&P futures return over the past year.  The regression analysis indicates a risk-minimizing beta of 0.88 with an R2 of 0.92
                                                                 FUTURES CONTRACT DATA
S&P 500 futures price                                                                                         1,000
S&P 500 index                                                                                                             999
S&P 500 index multiplier                                                                                           250
(a)    Calculate the number of futures contracts required to hedge $ 15 million of Andrew’s portfolio, using the date shown.  State whether the hedge is long or short.  Show all calculations.

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