1.In July 2019, a company wants to lock in the interest rate that will be earned for three months on an $8 million deposit to be made in March 2020. The company decides to trade in Eurodollar futures and the March 2020 Eurodollar futures price is 95.5. In March the company closes out its position in the futures market when the 3-month LIBOR is 5% per annum and the futures price is 95. What is the profit or loss earned (in dollars) by the company on its deposit after taking into account the gain or loss in the futures market?

A.Loss of $10,000

B.Profit of $11,000

C.Loss of $12,000

D.Profit of $13,000

E.Loss of $13,500