A fund manager expects to receive a cash inflow of R50 000 000 in three months. She wishes to use futures contracts to take a R30 000 000 synthetic position in shares and a R20 000 000 in bonds today. The share would have a beta of 1.15 and the bond a modified duration of 6.25. A share index futures contract with a beta of 0.90 is priced at R300 000 and a bond futures contract with a modified duration of 7.50 is priced at R105 000.

Indicate whether the fund manager should sell (short) or buy (long) these bond futures.

the above number of bond futures.