1. Use the website cmegroup.com for the following:

a. What is the implied LIBOR rate based on the price of the June 2018 Eurodollar futures contract (under interest rates product label of GE)?_____________

b. Assume you work for a firm that needed to borrow $25,000,000 in June of 2018 and would be paying an interest rate based in LIBOR. If you wanted to hedge your exposure to a change in LIBOR rates how many contracts would you sell?_____________

c. Based on your answer in b, how much margin would you be required to deposit (assuming you are classified as a hedger and only need to deposit the maintenance margin)?_______________

d. If in June of 2018 at the settlement of the contract LIBOR rates end up being 3.00%, what would be the total gain or loss on your position in the contract (assuming you held them until expiration)?______________ (show work below for credit!!!)