1.4. Suppose that on 25 November 2022 you decided to only hedge the June 2023 interest rate exposure. Suppose you used the JIBAR futures for June 2023 as the hedging instrument. Suppose it is now 10 January 2023 and you decided to exit this hedged position for June 2023. Suppose the 2023 JIBAR Futures contracts are priced on 10 January as in Table 1.3 below. 1.4.1. Calculate and use the futures contract prices (i.e. PV of R100000 per contract) at which you entered and exited the futures contract. Use this price information to calculate the profit/loss your hedge would amount to if you offset your position on 10 January. (5) 1.4.2. Use the Index values in Tables 1.1 and 1.3 to show the index values at which you entered and exited the futures contract. Use this index information to calculate the profitloss your hedge would amount to if you offset your position on 10 January. (5) 1.4.3. Now, instead, suppose you used the FRA 201291 (as calculated in 1.3 above) as the hedging instrument. Suppose it is now 10 January 2023 and you decided to exit this hedged position for June 2023. Suppose the available JIBAR spot rates in the market on 10 January were as in Table 1.4 below. What profitloss would your hedge amount to if you offset your position on 10 January? (11) Table 1.4: JIBAR Spot rates (NAC) on 10 January 2023: 1.4. Suppose that on 25 November 2022 you decided to only hedge the June 2023 interest rate exposure. Suppose you used the JIBAR futures for June 2023 as the hedging instrument. Suppose it is now 10 January 2023 and you decided to exit this hedged position for June 2023. Suppose the 2023 JIBAR Futures contracts are priced on 10 January as in Table 1.3 below. 1.4.1. Calculate and use the futures contract prices (i.e. PV of R100000 per contract) at which you entered and exited the futures contract. Use this price information to calculate the profit/loss your hedge would amount to if you offset your position on 10 January. (5) 1.4.2. Use the Index values in Tables 1.1 and 1.3 to show the index values at which you entered and exited the futures contract. Use this index information to calculate the profitloss your hedge would amount to if you offset your position on 10 January. (5) 1.4.3. Now, instead, suppose you used the FRA 201291 (as calculated in 1.3 above) as the hedging instrument. Suppose it is now 10 January 2023 and you decided to exit this hedged position for June 2023. Suppose the available JIBAR spot rates in the market on 10 January were as in Table 1.4 below. What profitloss would your hedge amount to if you offset your position on 10 January? (11) Table 1.4: JIBAR Spot rates (NAC) on 10 January 2023