Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the average duration of the loans is 10 years. the

The average duration of the loans is 10 years. The average duration of the deposits...

50.1K

Verified Solution

Question

Accounting

image

The average duration of the loans is 10 years. The average duration of the deposits is 3 years. Consumer loans Commercial Loans Total Assets $50 million Deposits $235 million $200 million Equity $15 million $250 million Total Liabilities & Equity $250 million What is the number of T-Bill futures contracts necessary to hedge the balance sheet if the duration of the deliverable T-bills is 0.25 years and the current price of the futures contract is $98 per $100 face value? 6,212 contracts. 6,805 contracts. 6,900 contracts. 7,112 contracts. 7,327 contracts

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students