305 BANK has total assets of $500 million and a leverage-adjusted duration gap of 3 years. You want to use a futures contract to hedge 305 BANK's interest rate exposure. The futures contract has an underlying duration of 4 years and a price of $100,000.

How many future contracts do you need to hedge 305 BANK's exposure to changing interest rates?

a.) 640

b.) 980

c.) 1,670

d.) 2,800

e.) 3.750