A portfolio is worth $24,000,000. The futures price for a Treasury note futures contract is 110 and each contract is for the delivery of bonds with a face value of $100,000. On the delivery date the duration of the bond that is expected to be cheapest to deliver is 6 years and the duration of the portfolio will be 5.5 years. How many contracts are necessary for hedging the portfolio?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A portfolio is worth $24,000,000. The futures price for a Treasury note futures contract is 110 and each contract is for the delivery of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
For the three years from early 2002 to early 2005, the euro maintained a strong and steady rise in value against the U. S. dollar (USD). After a brief respite in 2005, the euro continued its climb against the USD into 2008.
Answers (2)
Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7, 000 and Tate is to build a garage, repair a boat, and build a doghouse.
Answers (1)
You can probably use the 1040EZ form, as long as what is true?
Answers (1)
Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What was the rate of return to an investor in the fund?
Answers (1)
10) A shopkeeper loses 5% by selling a water bottle for rupees 55.10. At what price should it be sold in order to gain 85%
Answers (1)
New Questions in Business
The following information is available for Splish Brothers Corp. for the year ended December 31, 2022.
Answers (1)
Which of the following is true regarding internal customers of an organization? They buy products or services for their own personal use. They receive goods or services from someone within the organization.
No Answers
Most businesses periodically remove bad accounts from their books true or false
Answers (1)
A consulting firm has a predetermined overhead rate of $120 per labor hour. The Smith job required 5 hours to compete. The overhead cost applied to this job is $
Answers (1)
Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra. Kendra transfers her right to payment under the contract to County Bank. This transfer is a. an alienation b.
Answers (1)