company has a $36 million equity portfolio with a beta of 0.9. The futures price on the S&P index for a contract delivering in 6 months is currently trading at 900. Futures contracts on $250 times the index can be traded. What trade is necessary to increase the beta to 1.2 over the next 4 months? O Long 48 futures contracts and close out the position in 4 months O Long 48 futures contracts and close out the position in 6 months O Short 48 futures contracts and close out the position in 4 months O Short 48 futures contracts and close out the position in 6 months O Short 192 futures contracts and close out the position in 6 months

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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 company has a $36 million equity portfolio with a beta of 0.9. The futures price on the S&P index for a contract delivering in 6 months is currently trading at 900. Futures contracts on $250 times the index can be traded. What trade is necessary to increase the beta to 1.2 over the next 4 months?

O Long 48 futures contracts and close out the position in 4 months

O Long 48 futures contracts and close out the position in 6 months

O Short 48 futures contracts and close out the position in 4 months

O Short 48 futures contracts and close out the position in 6 months

O Short 192 futures contracts and close out the position in 6 months 

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