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. a. If you are temporarily bearish on the stock market, how many contracts should you sell to fully eliminate your exposure over the next

. a. If you are temporarily bearish on the stock market, how many contracts should you sell to fully eliminate your exposure over the next six months?

a. Number of contracts 20

b. If T-bills pay 2% per six months and the semiannual dividend yield is 1%, what is the parity value of the futures price? (Do not round intermediate calculations.)

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