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  3. portfolio value: $1,000,000 current portfolio du

Portfolio Value: $1,000,000 Current Portfolio Duration: 7.00 Desired Portfolio Duration: 5.25...

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Question

Accounting

Portfolio Value: $1,000,000
Current Portfolio Duration: 7.00
Desired Portfolio Duration: 5.25
Dollar Duration per contract $10,000

How many derivatives contracts would you long or short to change the portfolio duration to the target level?

Group of answer choices

short 1.75 contracts

short 2 contracts

long 1.75 contracts

long 2 contracts

Answer & Explanation Solved by verified expert
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