1) Assume that an investor is securing a floating rate loan and is looking for protection against lost income that would arise if interest rates were to decline. Suppose the floor rate is 18% and that on a particular day, the rate on the investor's floating-rate loan of KSH 3,500,000 is 6%. REQUIRED What would be the floor payment (5 Marks) 2) Following your exposure to the futures contracts in the investment course at the USIU-A, you have decided to put your hands on it and purchase 300,000 shares of Kenya Commercial Bank. The futures price per share is KSH 23 and this contract is expiring in one weeks time (seven days). You have promised to commit an initial margin of KSH 1000,000. The following are the unit prices of the shares Tuesday KSH 25, Wednesday KSH 22, Thursday KSH 20, Friday KSH 25, Saturday KSH 27 and Sunday KSH 24. REQUIRED Determine the balance on your margin account at the close of business on Sunday and explain how much the shares will cost you on that day, clearing showing any loss or gain on acquisition (10 Marks) 3) The spot cane price was KSH 0.9642 per KSH and the September futures contract price was KSH 0.9921 per KSH. If when an investor closes the combined position in July, the cane prices decline such that SPOT PRICE= SH0.8240 AND FUTURE PRICE SH 0.8943, REQUIRED Determine the net July selling price 5 mks