The portfolio you manage is holding 5 million of treasury


The portfolio you manage is holding $5 million of treasury bonds with a 7% coupon rate and 5 years to maturity with a price of $98 (per $100 face value). To hedge the interest-rate risk on these bonds over the coming year, should you buy call or put options?

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Financial Management: The portfolio you manage is holding 5 million of treasury
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