4. (15 pts.) Suppose that in September you purchase $100,000 face value Treasury bonds for a price of 595,000. Assume that the bond matures in 15 years and that you plan to sell the bonds at the end of December. a. In the table below, calculate the gain or loss (indicate loss with a negative sign) that you incur for each potential bond selling price in December, and enter it in the "Selling Treasury Bonds" row. Price of Asset in December $85,000 $90,000 $95,000 $100,000 $105,000 Selling Treasury Bonds Selling Futures Contracts Purchasing Put Options b. Suppose that you want to hedge your long position by selling a futures contract for Treasury bonds for $95,000. Thus, at the end of December, the buyer of the futures contract agrees to buy the Treasury bonds from you for $95,000. Calculate the gain or loss that you incur from selling the futures contract for each potential bond selling price, and enter it in the "Selling Futures Contracts" row. Suppose instead that you want to hedge your long position by purchasing a put option on a Treasury bond futures contract with a strike price of $95,000 and a premium of $2000. Thus, at the end of December, you have the option of selling a futures contract for $95,000. Calculate the gain or loss that you incura from exercising (or not exercising) the put option to maximize profits or minimize losses) for each potential futures contract price, and enter it in the "Purchasing Put Options" row. (Over)