Refer to the previous exercise. Determine your profit if at the expiration date the settle price of

Question:

Refer to the previous exercise. Determine your profit if at the expiration date the settle price of the contract is 135 points. Calculate the gain or loss in each position.

Previous exercise

Calculate the amount of futures contracts you need to sell to hedge the interest-rate risk on your holdings of $$4$ million of T-bonds. Assume each contract currently sells for $125,000.

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