I need an answer to question 10. I have 2 pictures here to show you, the top and bottom half of question 10.

An investor owns 2oz. of gold, but he is bearish in the short term. Gold is at $1,850 /oz. and he buys a put with a strike of $1,800/oz. for $300. At expiration gold is at $1,750. What is the net gain or loss on the entire commodity/option portiolio? $100 $100 $400 $250 $500 uestion 10 (10 points) 1. You manage a small US Treasury bond portfolio and due to rising rates you are concerned about diminishing value and have decided to hedge 100% of the portfolio: You have to calculate the weighted duration of the porttolio and then using the 20yr T-Bond Futures ( $100,000 contract with a duration of 13.4283) decide how to hedge the portfolio using the duration hedging technique. How many T-Bond futures do you need and do you go short or long? Discuss the basis risk here. Question 11 (1 point) An increase in which of the following would increase the price of a call option on a stock index, all things remaining equal? 1. Stock prices II. Volatility of the underlying stock prices III. Interest rates IV. Exercise/strike price I, II, and III only II and IV only III, and IV only II only