#6

Question 6 Not yet answered Marked out of 12.00 Remove flag Question #4 a. Calculate the number of futures contracts you need to sell to hedge the interest rate risk on your holdings of $5 million of T-bonds. Assume each contract currently sells for $130,000. (6 points). Refer to the above question. Determine your profit if, at the expiration date, the contract's settlement price is 145 points. Calculate the gain or loss in each position. (6 points)