Suppose you want to hedge your risk exposure identified in Problem 1, and you have found the following futures contracts that are suitable for hedging. Determine the umber of futures contracts you need to use to hedge each position and specify wheter you enter the contracts by bying or selling 1. To hedge the interest rate risk of the bond position, you will use March 2021 T-Bond futures contracts. The T-bonds underlying the futures contracts have a maturity of 15 years, a duration of 14.25 years, and a price of 98.312%. The standard T-Bond futures contract size is $100,000. 2. To hedge the Foreign Exchange position, you use March 2021 futures for 1.2160. The Euro futures contract is 125,000. 3. To hedge the equity position, you use S&P 500 March 2021 futures for 3697.90. The contract size is 50 times the index price. Suppose you want to hedge your risk exposure identified in Problem 1, and you have found the following futures contracts that are suitable for hedging. Determine the umber of futures contracts you need to use to hedge each position and specify wheter you enter the contracts by bying or selling 1. To hedge the interest rate risk of the bond position, you will use March 2021 T-Bond futures contracts. The T-bonds underlying the futures contracts have a maturity of 15 years, a duration of 14.25 years, and a price of 98.312%. The standard T-Bond futures contract size is $100,000. 2. To hedge the Foreign Exchange position, you use March 2021 futures for 1.2160. The Euro futures contract is 125,000. 3. To hedge the equity position, you use S&P 500 March 2021 futures for 3697.90. The contract size is 50 times the index price