Exercise 8: An FRA market maker sells a 100 million 3x6 FRA at a rate of 1.650\%. The current 3-month and 6 month rates are 1.036% and 1.334% respectively. Determine the risk of the market maker's position. Determine the position he should take to hedge his position. Assuming that the 3-month Euribor rate observed on the FRA settlement date is 1.700%, determine the result of the hedged position