Laura has an equity portfolio valued at $11.2 million that has a beta of 1.32. She has decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 1402 with a $100 multiplier. The call option delta is. 582. What is the appropriate strategy for Laura to effectively hedge her portfolio? What is the appropriate strategy for Laura if she decides to use put contracts on the same index with the same expiration?
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