f. [15 marks] Montreal Holding Corporation wishes to hedge the balance sheet in exhibit 1 with Treasury bond futures contracts, which currently have a price quote of 95 (Par =$100,000) for the benchmark 20-year, 8 percent coupon bond underlying the contract. Assume the asset duration is six years, and the duration of the liabilities is four years. a. what type of position (long or short) should be taken? b. How many contracts are necessary to fully hedge the bank using different average interest rates on Assets and Liabilities? c. What will be the respective gain or loss on your futures and spot positions if rates fall 50 basis point?