If all spot interest rates are increased by one basis point, a value of a portfolio of swaps will increase by $1000. For hedging the portfolio，how many Eurodollar futures contracts are needed？
　　A.     40
　　B.     22
　　C.     11
　　D.     1100
　　Answer: A
　　Eurodollar futures contracts are constructed so that the DV01 is always equal to $25 per contract. Therefore, we need 1000/25= 40 contracts.
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