Suppose DVO1 of 30 year and 10 year US Treasuries is respect

Suppose DVO1 of 30 year and 10 year US Treasuries is respectively equal to $175, and $106. How many Treasury notes have to be purchase for 100 Treasury bonds short position?

Question 4 options:

1)

2)

3)

4)

Solution

175 * 100 = 106* number of Treasury notes that have to be purchased

number of Treasury notes that have to be purchased = 165