i) Explain the interest rate risk the investor is facing. (1 mark) ii) Should the investor go long or short on the futures contract? (1 mark) iii) What price does the investor go long/short on August 15th? (1 mark) iv) How many Eurodollar futures contracts must the investor use to hedge? (1 mark) v) What is the value of the underlying asset when the contract position is first opened? (2 marks) vi) vii) What is the value of the underlying asset when the contract position is closed out? (2 marks) What is the gain/loss achieved by the investor when they closed out on 16th Dec. 2021? (2 marks) The table below provides information on Eurodollar futures price changes over the hedge period. Date Eurodollar Futures Price 15 August 2021 99.30 16 August 2021 99.24 17 August 2021 98.29 16 Dec. 2021 98.50