(C) You are a treasurer at City Finance Bhd. You have made an arrangement with Putra Finance to borrow RM2 million in December 2020 for a period of 3 months. Putra Finance agrees to lend you at a rate of 5% p.a.. You will also lend RM2 million to Jet Sdn. Bhd. at KLIBOR+0,5% starting in December 2020 for a period of 3 months. What would be your strategy in order to protect your interest income and why? (4 marks) Continued.... LLCHONG 14 BENIH FINANCIAL DERIVATIVES 12 MARCH 2021 You observe the following quotes on the 3-month KLIBOR futures contracts: Contract Sep 20 Oct 20 Dec 20 Mar 21 Jun 21 Month Price 96.08 95.99 95.90 95.65 95.54 Outline your strategy (position, number of contracts, contract months and price). (C) You are a treasurer at City Finance Bhd. You have made an arrangement with Putra Finance to borrow RM2 million in December 2020 for a period of 3 months. Putra Finance agrees to lend you at a rate of 5% p.a.. You will also lend RM2 million to Jet Sdn. Bhd. at KLIBOR+0,5% starting in December 2020 for a period of 3 months. What would be your strategy in order to protect your interest income and why? (4 marks) Continued.... LLCHONG 14 BENIH FINANCIAL DERIVATIVES 12 MARCH 2021 You observe the following quotes on the 3-month KLIBOR futures contracts: Contract Sep 20 Oct 20 Dec 20 Mar 21 Jun 21 Month Price 96.08 95.99 95.90 95.65 95.54 Outline your strategy (position, number of contracts, contract months and price)