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A corporate treasurer would like to use 3-month Eurodollar futures contracts to lock in the rate of interest paid by the corporation on a one-year

A corporate treasurer would like to use 3-month Eurodollar futures contracts to lock in the rate of interest paid by the corporation on a one-year $100 million floating rate note which will be issued in 3 months. Assume that Eurodollar futures contracts which mature in 3 months, 6 months, 9 months, and 12 months are traded. What should the treasurer do? Should the treasurer buy or sell contracts?

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