3-month KLIBOR = 9.00% 6-month KLIBOR futures = 90.0 (i) Outline the appropriate hedging strategy to protect you from the risk of a rise of interest rate. (ii) If interest rates rise or fall by 2% over the next 3 months, prove that your hedge strategy above would have protected your interest spread or total earnings. 3-month KLIBOR = 9.00% 6-month KLIBOR futures = 90.0 (i) Outline the appropriate hedging strategy to protect you from the risk of a rise of interest rate. (ii) If interest rates rise or fall by 2% over the next 3 months, prove that your hedge strategy above would have protected your interest spread or total earnings