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Use the following December 31, 2022 market value balance sheet for BC Bank to answer the question below. Assets (in thousands of $s ) Liabilities/Equity
Use the following December 31, 2022 market value balance sheet for BC Bank to answer the question below. Assets (in thousands of $s ) Liabilities/Equity (in thousands of $s ) The bank's manager thinks rates will increase by 0.50% in the next 6 months. To hedge this interest rate risk the manager will use June T-bond futures contracts. The T-bonds underlying the futures contracts have a duration of 14.25 years and a current price of $108 per $100 of face value. How many futures contract should BC Bank enter into to hedge the bank's interest rate risk? Please input your answer as a number of contracts. Please make sure you enter in a negative value with a -. For example, -870
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