It is July 17 and a portfolio manager at NPR is concerned overthe increased vola

It is July 17 and a portfolio manager at NPR is concerned overthe increased volatility of the market and plans to hedge his $430million growth portfolio over the next three months. The beta ofhis portfolio is 1.65. The December futures contract for theS&P 500 index is currently quoted at 874.5. The value of eachfutures contract is 250 times the value of the index.