1. Verify that the change in the futures position will offset the change in the cash balance...

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1. Verify that the change in the futures position will offset the change in the cash balance sheet position for a change in market interest rates of plus 100 basis points and minus 50 basis points.

If the bank had hedged with Treasury bill futures contracts that had a market value of $98 per $100 of face value, how many futures contracts would have been necessary to fully hedge the balance sheet?

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