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1. From the perspective of a depositor, should forward rate be less than the implied futures rate? Or does the reverse hold? 2. If a
1. From the perspective of a depositor, should forward rate be less than the implied futures rate? Or does the reverse hold? 2. If a hedger wants to change his/her bond portfolio duration from to using a bond futures contract which has a duration and contract price , how many futures contracts should the hedger be short (or long)? Suppose that the current bond portfolio wealth is .
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