Conyers Bank holds Treasury bonds with a book value of $30 million. However, the 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.
Correct Answer:
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