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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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should sell the US Treasury with a face value of 93.6m.Thecolleagueofriskmanagerreviewsthehedgingprocedureandstatesthat"...ifyouwanttohedgeaUSTreasurywithafacevalueof93.6m. The colleague of risk manager reviews the hedging procedure and states that "...if you want to hedge a US Treasury with a face value of 93.6m.Thecolleagueofriskmanagerreviewsthehedgingprocedureandstatesthat"...ifyouwanttohedgeaUSTreasurywithafacevalueof93.6m, then just sell $100m corporate bond...". Which of the following statements is correct regarding the colleague's statement?

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