13.11 Example 1 Portfolio has a beta of 1 o t is currently worth $500,000 The index currently stands at 1000 What trade is necessary to provide insurance against the portfolio value falling below $450,000? Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 13.11 Example 1 • Portfolio has a beta of 1.0 • It is currently worth $500,000 • The index currently stands at 1000 • What trade is necessary to provide insurance against the portfolio value falling below $450,000?