In April 2002, the Treasurer of Company X also intends to borrow euros in the London money

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In April 2002, the Treasurer of Company X also intends to borrow euros in the London money market toward the end of June. The loan will have a three-month maturity ending in September. In the meantime, the interest rate on the intended borrowing could increase. She could hedge this risk by selling an interest rate future. Using the following data, estimate the fair market value and the quoted price for the appropriate interest rate future.

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