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A Japanese MNC wants to lock in the cost of borrowing on a 9-month USD 45 million loan to be taken out in 3 months

A Japanese MNC wants to lock in the cost of borrowing on a 9-month USD 45 million loan to be taken out in 3 months time by using Eurodollar futures contracts. How many Eurodollar futures contracts in total will be sold by the Japanese MNC in order to hedge its cost of borrowing?

a.135

b.1

c.145

d.9

e.None of the options in this question are correct.

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