Question 5 needed only. No answer needed for the other question !!

Your company is a residential builder and expects lumber prices to rise over the next few months as the construction season begins on May 15 . The amount of lumber required to build two houses in the development is 55,000 board feet. The development of estate homes will be 200 homes in total. It takes approximately 4 weeks to build 25 houses and you have sufficient manpower to work on 25 houses at a time. You must close on 25 houses to start on the next 25. One lumber future equals 110,000 board feet and the contracts expire in July, Sept., Nov. and Jan. Structure a hedge for the construction season noting the number of contracts and whether long or short in each of the contract periods. You have a 50 mil US gov't bond portfolio and need to hedge at least 60% of it as interest rates are continuing to rise. The portfolio contains bonds from 5 to 10 years with an overall duration of6.7. The duration of the 5 year T-Note future is 3.75 and the duration of the 10 year T-Note future is 7.8. The contract size (100,000 face value x price) the 5yr T-Note is 107045 and the 10yrT-Note is 111125