22-110 Based on the Estimate of Gain or Loss in Question

question 3

Multiple Choice

22-110 Based on the estimate of gain or loss in question 108,what is the number of T-Bill futures contracts necessary to hedge the balance sheet if the duration of the deliverable T-bills is 0.25 years and the current price of the futures contract is $98 per $100 face value?

• A)6,212 contracts.
• B)6,805 contracts.
• C)6,900 contracts.
• D)7,112 contracts.
• E)7,326 contracts.

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