4. Suppose we wish to borrow $600,000,000 for 91 days at LIBOR beginning next September. In this case, we might want to hedge against a potential ______ in interest rates between now and September by taking a _____ position in Eurodollar futures

a.increase ... short

b.decrease ... long

c. increase ... long

d.decrease ... short

5. Suppose we wish to borrow $9,000,000 for 91 days at LIBOR beginning next June, and that the quoted Eurodollar futures price (based on a 360-day year) is 92.72. How much will be needed to repay the loan?

a.$9,165,620

b. $9,655,200

c. $9,706,644

d. $9,317,337

e. $9,331,240