A firm is going to recieve a floating interest rate payment three months from now. The notional principal is $1,000,000. It wants to lock in these interest payments by using an interest rate futures contract. Interest rate Eurodollar futures for three months from now settled at 98.01.

If the floating-rate interest three months from now is 1%, calculate the profit or loss that the firm is making with this Eurodollar futures contract It the floating-rate interest three months from now is 2%, calculate the profit or loss that the firm is making with this Eurodollar futures contract