C) Indicate how many contracts you should be entered in this strategy.

D) Show the outcome of the strategy in 1.b if interest rate rises by 2% over the next 3 months. Compute the effective interest on this loan.

Hi, is there anyone who can help me out with this question?

(i) In late July 2021, you as the financial manager of Simm BHD, project that your company would require a RM9 million loan from your bank th on 15 September 2021 at 3-month KLIBOR + 1%. The current 3-month KLIBOR is 4.5% and the current 3-Month Kuala Lumpur Interbank Offered Rate Futures (FKB3) quotations are as follows. Prices 2019 Financial Derivatives: 9.00am - 5.00pm Holiday Calendar Equity Derivatives: 8.45am-5.15pm Commodity Derivatives: 10.30am - 6:05pm (FGLD: 9.00am - 7:00pm) Prices displayed on this website are delayed by 15 minutes to access rew-time data, please contact your roures Brokers, our information Services Vendors of Scosce to Bursa Station Prices Derivatives By Contract Code - FKB3 Contract Code FKB3 No Name Month 1 FKB3 August 2021 2 FKB3 September 2021 3 FKB3 October 2021 Sett.Price Change 95.00 -2.00 94.75 -1.50 94.50 OI 6223 12423 14003 Vol 3,126 9,213 10,187 -1.50 c) Indicate how many contracts you should be entered in this strategy. [4 marks] d) Show the outcome of the strategy in 1.b if interest rate rises by 2% over the next 3 months. Compute the effective interest on this loan. [15 marks] (i) In late July 2021, you as the financial manager of Simm BHD, project that your company would require a RM9 million loan from your bank th on 15 September 2021 at 3-month KLIBOR + 1%. The current 3-month KLIBOR is 4.5% and the current 3-Month Kuala Lumpur Interbank Offered Rate Futures (FKB3) quotations are as follows. Prices 2019 Financial Derivatives: 9.00am - 5.00pm Holiday Calendar Equity Derivatives: 8.45am-5.15pm Commodity Derivatives: 10.30am - 6:05pm (FGLD: 9.00am - 7:00pm) Prices displayed on this website are delayed by 15 minutes to access rew-time data, please contact your roures Brokers, our information Services Vendors of Scosce to Bursa Station Prices Derivatives By Contract Code - FKB3 Contract Code FKB3 No Name Month 1 FKB3 August 2021 2 FKB3 September 2021 3 FKB3 October 2021 Sett.Price Change 95.00 -2.00 94.75 -1.50 94.50 OI 6223 12423 14003 Vol 3,126 9,213 10,187 -1.50 c) Indicate how many contracts you should be entered in this strategy. [4 marks] d) Show the outcome of the strategy in 1.b if interest rate rises by 2% over the next 3 months. Compute the effective interest on this loan. [15 marks]