!! Answer Q16 only please. Answer not needed for other one !!

You have a 50 mil US gov't bond portfolio and need to hedge at least 60% of it as interest rates are continuing to rise. The portfolio contains bonds from 5 to 10 years with an overall duration of6.7. The duration of the 5 year T-Note future is 3.75 and the duration of the 10 year T-Note future is 7.8. The contract size (100,000 face value x price) the 5yr T-Note is 107045 and the 10yr T-Note is 111125. You are working in a Canadian export business selling to Europe (the C$ /Euro spot cross rate is C$1.3399). The C$/US$ spot rate is C$1.3787 and the US\$/Euro spot rate is US1.0286. The C\$ Futures are C$100,000 per contract and the Euro contract is E150,000. You have receivables of E300,000 per month. You believe the C$ will weaken over the next few months. Structure a hedge noting the number of contracts you require for each side of the hedge and whether you are short or long futures. You have a 50 mil US gov't bond portfolio and need to hedge at least 60% of it as interest rates are continuing to rise. The portfolio contains bonds from 5 to 10 years with an overall duration of6.7. The duration of the 5 year T-Note future is 3.75 and the duration of the 10 year T-Note future is 7.8. The contract size (100,000 face value x price) the 5yr T-Note is 107045 and the 10yr T-Note is 111125. You are working in a Canadian export business selling to Europe (the C$ /Euro spot cross rate is C$1.3399). The C$/US$ spot rate is C$1.3787 and the US\$/Euro spot rate is US1.0286. The C\$ Futures are C$100,000 per contract and the Euro contract is E150,000. You have receivables of E300,000 per month. You believe the C$ will weaken over the next few months. Structure a hedge noting the number of contracts you require for each side of the hedge and whether you are short or long futures