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Suppose a portfolio manager is expecting the yield spread between the Treasury Bonds and Treasury notes to tighten in the next 6 months. Question options:

Suppose a portfolio manager is expecting the yield spread between the Treasury Bonds and Treasury notes to tighten in the next 6 months.

Question options:

1)

Short T-bond and long T-note based on the hedge ratio

2)

Short T-note and long T-bond based on the hedge ratio

3)

buy put option on T-note

4)

b and c are correct

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