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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 T-bond futures prices decrease to 81-27/32nds, what is the value of the futures hedge position?
A. $81,270,000.
B. $24,553,125.
C. $26,700,000.
D. $812,700.
E. $28,387,500.
Answer
This answer is hidden. It contains 46 characters.
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