22-109 Based on the estimate of gain or loss in question 108,what is the number of T-bond futures contracts necessary to hedge the balance sheet if the duration of the deliverable bonds is 9 years and the current price of the futures contract is $96 per $100 face value?
A)1,630 contracts.
B)1,475 contracts.
C)1,900 contracts.
D)2,077 contracts.
E)3,225 contracts.

Question

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The Answer of 22-109 Based on the estimate of gain or loss in question 108,what is the number of T-bond futures contracts necessary to hedge the balance sheet if the duration of the deliverable bonds is 9 years and the current price of the futures contract is $96 per $100 face value?
A)1,630 contracts.
B)1,475 contracts.
C)1,900 contracts.
D)2,077 contracts.
E)3,225 contracts.

22-109 Based on the Estimate of Gain or Loss in Question