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A bond portfolio manager has a current bond portfolio of $5 million with a duration of 7.5 years. The futures contract is trading at $114.8125.

A bond portfolio manager has a current bond portfolio of $5 million with a duration of 7.5 years. The futures contract is trading at $114.8125. The futures has a duration of 6.5. The bond manager would like to hedge his spot position. He has to ----- , -----# of contracts.

Buy, 51 Contracts

Sell, 51 Contracts

Buy, 26 Contracts

Sell, 26 Contracts

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