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1.2 How to hedge the S&P 500 Index 1530 with USD 10 million?

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Since you are doing hedging, in order to prevent the stock price from falling, you can only sell contracts. The calculation formula is as follows:

Number of sales = total spot value/(spot index point × each point Multiplier)×β=10000000/(1530×250)×1.2=31.37, that is, selling approximately 31 futures contracts. Each point of the S&P futures index represents $250.