13.12 Example 2 Portfolio has a beta of 2.0 It is currently worth $500,000 and index stands at 1000 The risk-free rate is 12% per annum The dividend yield on both the portfolio and the index is 4% How many put option contracts should be purchased for portfolio insurance? Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 13.12 Example 2 • Portfolio has a beta of 2.0 • It is currently worth $500,000 and index stands at 1000 • The risk-free rate is 12% per annum • The dividend yield on both the portfolio and the index is 4% • How many put option contracts should be purchased for portfolio insurance?