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A bond dealer needs to hedge a $5,000,000 inventory. The modified duration of the portfolio is 12.5 years and the modified duration of the Treasury

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A bond dealer needs to hedge a $5,000,000 inventory. The modified duration of the portfolio is 12.5 years and the modified duration of the Treasury bond futures contract (Face value = $100,000) is 10.3 years. The futures price is 107. Compute the number of contracts required to hedge this position. O A. 60 B. 57 C. 50 D. 39

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