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Question 2 2 points Save Answer Consumer loans $150 Deposits $450 million million Commercial Loans $350 million Equity $50 million Total Assets $500 million Total Liabilities & Equity $500 million The average duration of the loans is 8 years. The average duration of the deposits is 3 years. Question: Based on the estimate of gain or loss in #1, what is the number of T-bond futures contracts necessary to hedge the balance sheet if the duration of the deliverable bonds is 9 years and the current price of the futures contract is $98 per $100 face value? The size of each T-bond futures contract is $100,000. Do you long or short such futures contract? Short 2.896 futures contract . . . O B. Long 2,896 futures contract Long 3,005 futures contract OD. Short 3,005 futures contract Question 2 2 points Save Answer Consumer loans $150 Deposits $450 million million Commercial Loans $350 million Equity $50 million Total Assets $500 million Total Liabilities & Equity $500 million The average duration of the loans is 8 years. The average duration of the deposits is 3 years. Question: Based on the estimate of gain or loss in #1, what is the number of T-bond futures contracts necessary to hedge the balance sheet if the duration of the deliverable bonds is 9 years and the current price of the futures contract is $98 per $100 face value? The size of each T-bond futures contract is $100,000. Do you long or short such futures contract? Short 2.896 futures contract . . . O B. Long 2,896 futures contract Long 3,005 futures contract OD. Short 3,005 futures contract