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17. Calculate the LADG based on the following information: Assets1 = 40M loans where DA,1 = 2.5 Assets2 = 60M loans where DA,2 = 4.5

17. Calculate the LADG based on the following information: Assets1 = 40M loans where DA,1 = 2.5 Assets2 = 60M loans where DA,2 = 4.5 Liabilities = 80M deposits where D = 3.9

18. Given a futures duration of 8 years, futures price of $95 per face value of $100K, interest rate goes from 8% to 9%, and based on the LADG from the previous problem, how many futures contracts are needed to perfectly hedge?

19. Draw and label all relevant points for a short call option.

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