$420 million for 3 months beginning December 16th 2021. The Dec 2021 Eurodollar futures quote is 96.000 today, and on December 16th 2021 (at expiration), the 3-month Eurodollar rate turns out to be 5%. a) Do you buy or sell Eurodollar futures? How many? b) What rate are you locking in today? (per annum) c) Show you gains/losses on the futures contracts and the dollar amount interest paid on the loan based on the prevailing interest rate on Dec 16th. and compute the net amount you ended up paying due to the higher interest rate. d) Show that you indeed paid the locked-in rate. 3 1 4. You want to lock in a rate at which you will borrow $420 million for 3 months beginning December 16th 2021. 2 The Dec 2021 Eurodollar futures quote is 96.000 today, and on December 16th 2021 (at expiration), the 3-month Eurodollar rate turns out to be 5%. 4 a) Do you buy or sell Eurodollar futures? How many? 5 ) What rate are you locking in today? (per annum) 6 Show you gains/losses on the futures contracts and the dollar amount interest paid on the loan based on the prevailing interest rate on Dec 16th. and compute the net amount you ended up paying due to the higher interest rate. B d) Show that you Indeed paid the locked-in rate. 7 10