It is March and Cavalier Financial Services Corporation is concerned about what an increase in interest rates will do to the value of its bond portfolio. The portfolio currently has a market value of $351.1 million, and Cavalier's management intends to liquidate $1 million in bonds in June to fund additional corporate loans. If interest rates increase to 6 percent, the bond will sell for $0.95 million. Cavalier's management sells 10 June Treasury bond contracts at 109-080 in March. Interest rates do increase, and in June Cavalier's management offsets its position by buying ten June Treasury bond contracts at 100-160. What is the dollar gain/loss to Cavalier from the combined cash and futures market operations described above? Question 25 (5 points): It is March and Cavalier Financial Services Corporation is concerned about what an increase in interest rates will do to the value of its bond portfolio. The portfolio currently has a market value of $351.1 million, and Cavalier's management intends to liquidate $1 million in bonds in June to fund additional corporate loans. If interest rates increase to 6 percent, the bond will sell for $0.95 million. Cavalier's management sells 10 June Treasury bond contracts at 109-080 in March. Interest rates do increase, and in June Cavalier's management offsets its position by buying ten June Treasury bond contracts at 100-160. What is the basis at the termination of the hedge