1.You buy ten Eurodollar futures contract at a price of 94.59 and that the position you acquire is in the futures contract that is about to expire.One week later you exit the position at a price of 94.23.

a.How much money did you make (or lose)?

b.If the Eurodollar trade was a hedge for a short forward position in a Treasury bond that will deliver in one year, explain whether the Eurodollar trade was a perfect hedge.What alternative strategy might you recommend to hedge the risk of your short position?