Contracts = (Yield Beta) [(MDTarget – MDP) / MDF][VP / (Pf(Multiplier))]
Contracts = 1.1 × [(5 – 6.3) / 4.2] × ($40,000,000 / $245,000) = -55.59
To reduce the duration of the portfolio, take a short position in the futures contract. Note that we must round the number of contracts up to 56 since partial contracts cannot be traded
