On January 4, 2021, an Fl has the following balance sheet (rates = 10 percent) Duration Gap =[6(170/200)4]=2.6 years >0 The Fl manager thinks rates will increase by 0.75 percent in the next three months. If this happens, the equity value will change by: E=[6200170(4)]200m1.100.0075=$3,545,455 The Fl manager will hedge this interest rate risk with either futures contracts or option contracts. If the Fl uses futures, it will select June T-bonds to hedge. The duration on the T-bonds underlying the contract is 14.5 years, and the T-bonds are selling at a price of $114.34375 per $100, or $114,343.75. T-bond futures rates, currently 9 percent, are expected to increase by 1.25 percent over the next three months. If the Fl uses options, it will buy puts on 15 -year T-bonds with a June maturity, an exercise price of 113 , and an option premium of 13%. percent. The spot price on the T-bond underlying the option is $135.71875 per $100 of face value. The duration on the T-bonds underlying the options is 14.5 years, and the delta of the put options is -0.75 . Managers expect these T-bond rates to increase by 1.24 percent from 7.875 percent in the next three months. I If by April 4,2021 , balance sheet rates actually fall by 0.75 percent, futures rates fall by 1.05 percent, and T-bond rates underlying the option contract fall by 1.24 percent, would the FI have been better off using the futures contract or the option contract as its hedge instrument? Why