1. Summarize the differences between:
1. angel financing
2. venture capital
3. private equity
2. The Kromwell Community Bank's asset portfolio has an average duration of 6 years and its liability portfolio has an average duration of 2.5 years. The bank has $500 million in total assets and $450 million in liabilities. The Kromwell Community Bank is thinking about hedging its risk by using a Treasury Bond futures contract whose underlying's duration is 7.5 years and has a price of $98,000. How many futures contracts will it need to hedge its risk?
A. buy 2,381 contracts
B. sell 2,381 contracts
C. buy 2,551 contracts
D. sell 2,551 contracts