The Number of Futures Contracts Needed to Hedge a Position

question 24

True/False

The number of futures contracts needed to hedge a position increases as the bank's duration gap increases.

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Definitions:

Number Expressed

A specific value presented in numerical form.

Thousandths

A decimal place three places to the right of the decimal point, representing parts of a thousand.

Number Expressed

A way of representing a quantity or value in terms of digits or symbols.

Thousandths

A fractional part in a series, representing one part out of a thousand.