1) A Eurodollar futures price changes from 95.32 to 92.35. What is the gain or loss to an investor who is short 7 contracts?

2) You own a bond portfolio worth $5 mln on August 1^st, 2019. The duration of the portfolio in October will be 4.2 years. The November Treasury bond futures price is currently 96-26 and the CTD bond will have a duration of 5 years at maturity. How should you immunize the portfolio against changes in interest rates over the next 2 months?

a. you should short 45 futures contracts

b. you should long 45 futures contracts

c. you need to purchase the option contract

d. you should short only one futures contract