4.11 Hedging Using Index Futures (Page 82) To hedge the risk in a portfolio the number of contracts that should be shorted is P where P is the value of the portfolio, B is its beta, and a is the value of the assets underlying one futures contract Options, Futures, and other Drerivatives, 5th edition o 2002 by John C. HullOptions, Futures, and Other Drerivatives, 5th edition © 2002 by John C. Hull 4.11 Hedging Using Index Futures (Page 82) • To hedge the risk in a portfolio the number of contracts that should be shorted is • where P is the value of the portfolio, b is its beta, and A is the value of the assets underlying one futures contract b P A