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Question
Conyers Bank holds U.S. Treasury bonds with a book value of $30 million. However, the U.S. Treasury bonds currently are worth $28,387,500.
If Treasury bond futures prices are currently 89-00/32nds, what is the value of the Treasury bond futures hedge position?
A. $30,000,000.
B. $28,387,500.
C. $26,700,000.
D. $89,000,000.
E. $890,000.
Answer
This answer is hidden. It contains 91 characters.
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