A financial intermediary's balance sheet is

such that $D_A=5,D_L=3.$ This $FI$ has $$300$

million in assets and net worth $($equity$)$ of

$$50$ million.

The FI has access to futures on $6-$month

commercial paper. This paper is trading at

$$0\mathrm{.}94$ per dollar and the futures contract

covers $$1,000,000$ face value. How many

contracts does the $FI$ require if it uses the

commercial paper futures contract to fully

hedge its core exposure? $($Note: Commercial

paper is a zero$-$coupon asset.$)$

Round your final answer to the nearest whole

number.

The FI needs to

contracts.