Chapter 24: Hedging with Financial Derivatives l. If the pension fund you manage to expects to have an inflow of $240 million 12 months from now, what forward contract would you seek to enter into to lock in current interest rates? 8. Suppose that you buy a call option on a $1000,000 Treasury bonds futures contract with an exercise price of 110 for a premium of $1,500. If on expiration the futures contract has a price of 111, what is your profit or loss on the contract