1. As Credit Officer of a large Malaysian bank, you have agreed to provide an important institutional customer with a fixed rate 3-month RM20 million loan 90 days from today. You had priced the loan at 12% annual interest rate. Assuming your cost of funds is the KLIBOR rate and the following quotes are now available. 3-month KLIBOR=9% 3-month KLIBOR futures =90.0 (matures in 90 days) a.) How would you protect yourself from a rise in interest rates? (Outline the strategy) b) Assuming interest rates rise by 2% over the next 3 months, show using computation, that you would have locked-in the interest spread