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You are a market maker and are holding $20 million of bonds that you intend to sell. The bonds have a modified duration of 7.5.

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You are a market maker and are holding $20 million of bonds that you intend to sell. The bonds have a modified duration of 7.5. You would like to protect yourself against the possibility that interest rates will increase before you can sell the bonds. The futures price for a T-bond futures contract is $108,750 and the duration of the T-bond is 11. What T-bond futures position will provide you with the desired protection? O sell 110 T-bond futures contracts sell 184 T-bond futures contracts sell 125 T-bond futures contracts sell 148 T-bond futures contracts

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