This question was created from FNCEFinalTermAssignment.docx https://www.coursehero.com/file/33535097/FNCEFinalTermAssignmentdocx/
Should Mr. Toriop buy or sell futures? b. How many contracts should Mr. Toriop use? c. Suppose that the portfolio's value falls to $26,557,089, and the futures price turns out to be 103 8/32 in one year's time. What is the net profit from the hedged position? d. If Mr. Toriop were to liquidate the entire bond portfolio in one year's time given the information in part (c), what would be the total proceeds received?