brendarodrigue9867 brendarodrigue9867
  • 23-05-2023
  • Business
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A money market portfolio has a market value of $20,000,000 and its value will change by $500 for a change in short-term yields of one basis point. The eurodollar futures contract has a tick size of $25 for a change in yield of one basis point. What would be a good hedge for the money market portfolio? (Should you buy or sell futures? How many contracts?)

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