5, (15 points) Consider a Eurodollar futures contract that matures in 6 months from now. The contract is trading at P(Fut)-98 for a rate LIBORFut-2% now. Suppose in 6 months, the three-month LIBOR turns out to be 3%. If you hold a long position in the Eurodollar futures contract and the LIBOR rate stays the same until the maturing day of the contract. On the maturing day, the LIBOR rate is 3%, for a price of 97, what is the amount of cash flow you will receive or pay on the maturing day? (All the rates are annualized) Consider an FRA contract 6 x 9 with notional principal $1 million. The forward rate (3-month LIBOR) agreed upon in this contract is 2%. In three months, the LIBOR rate turns out to be 3%. If you pay LIBOR and receive the agreed forward rate in the contract, what is the amount of cash flow you will receive or pay on the maturing day? (All the rates are annualized)