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A financial intermediary's balance sheet is such that D A = 5 , D L = 3 . This F I has $ 3 0
A financial intermediary's balance sheet is such that This has $ million in assets and net worth equity of $ million.
The FI has access to futures on month commercial paper. This paper is trading at $ per dollar and the futures contract covers $ face value. How many contracts does the require if it uses the commercial paper futures contract to fully hedge its core exposure? Note: Commercial paper is a zerocoupon asset.
Round your final answer to the nearest whole number.
The FI needs to
contracts.
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