The duration of the futures contract used in the price sensitivity hedge ratio is

The duration of the futures contract used in the price sensitivity hedge ratio is




a. the duration of the spot bond being hedged using the futures price instead of the spot price
b. the duration of the deliverable bond using the spot price
c. the duration of the deliverable bond using the futures price
d. the duration of the overall bond portfolio
e. none of the above



Answer: C


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