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Bank managers is to hedge bank s exposure to increasing interest rates by selling 1 0 June Treasury bond contracts at 1 0 9 -

Bank managers is to hedge banks exposure to increasing interest rates by selling 10 June Treasury bond contracts at 109-150. Assume interest rates do increase, and management offsets its position by buying ten June Treasury bond contracts at 107-033. Calculate potential gain. What will be the overall return?

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