Please help.

An FI has a $100 million portfolio of six-year Eurodollar bonds that have an 8 percent coupon. The bonds are trading at par and have a duration of five years. The FI wishes to hedge the portfolio with T-bond options that have a delta of 0.625. The underlying long-term Treasury bonds for the option have a duration of 10.1 years and trade at a market value of $96,157 per $100,000 of par value. Each put option has a premium of $3.25 per $100 of face value.

1- How many bond put options are necessary to hedge the bond portfolio?

2- If interest rates increase 100 basis points, what is the expected gain or loss on the put option hedge?

3- What is the expected change in market value on the bond portfolio?

4- What is the total cost of placing the hedge?

5- Diagram the payoff possibilities.

6- How far must interest rates move before the payoff on the hedge will exactly offset the cost of placing the hedge?

7- How far must interest rates move before the gain on the bond portfolio will exactly offset the cost of placing the hedge?

8- Summarize the gain, loss, and cost conditions of the hedge on the bond portfolio in terms of changes in interest rates.