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A trader executes a $420 million 5-year pay fixed swap (duration 4.433) with one client and a $385 million 10 year receive fixed swap (duration 7.581) with another client shortly afterwards. Assuming that the 5-year rate is 4.15% and 10-year rate is 5.38% and that all contracts are transacted at par, how can the trader hedge his position?
A
Buy 4,227 Eurodollar contracts
B
Sell 4,227 Eurodollar contracts
C
Buy 7,185 Eurodollar contracts
D
Sell 7,185 Eurodollar contracts