It is now January. The current annual interest rate is 5.4%. The June futures price for gold is $1550.40, while the December futures price is $1,549. Assume the June contract expires in exactly 6 months and the December contract expires in exactly 12 months. a. Calculate the appropriate price for December futures using the parity relationship? (Do not round intermediate calculations. Round your answer to 2 decimal place.) Price for December futures b. Is there an arbitrage opportunity here? O Yes A manager is holding a $4.2 million bond portfolio with a modified duration of nine years. She would like to hedge the risk of the portfolio by short-selling Treasury bonds. The modified duration of T-bonds is 10 years. How many dollars' worth of T-bonds should she sell to minimize the risk of her position? (Enter your answer in dollars not in millions.) Worth of T-bonds $