3. Formosa Independence Bank has DA = 2.45 years and DL = 1.08 years. In addition, this bank has total assets of $375 million and liabilities of $337.5 million. The CFO of Formosa Independence Bank wishes to effectively reduce the duration gap to one year by hedging with T-Bond futures that have a market value of $115,000 and a DEut = 8 years. How many contracts are needed, and should the bank buy or sell them? (D =duration.) 3. Formosa Independence Bank has DA = 2.45 years and DL = 1.08 years. In addition, this bank has total assets of $375 million and liabilities of $337.5 million. The CFO of Formosa Independence Bank wishes to effectively reduce the duration gap to one year by hedging with T-Bond futures that have a market value of $115,000 and a DEut = 8 years. How many contracts are needed, and should the bank buy or sell them? (D =duration.)