University Banks average asset duration is 6 years and average liability durat

University Banks average asset duration is 6 years and average liability duration is 10 years. Suppose the size of its assets is $1000 million and its
liabilities are $950 million. If R is 12% and the bank is expecting a 150 basis point decrease in interest rates how many T-bond futures contracts are
required to fully hedge the equity value if the Treasury bond futures are selling for 94.5% of $100000 face value with duration of 4.50 years?

How many contracts are needed to offset risk on the balance sheet?

Short (sell) 8230 contracts

Long (buy) 8230 contracts

Short (sell) 4250 contracts

None