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Please use the following information for the next 5 questions. Suppose the September Eurodollar futures contract has a price of 95.00. ABC company plans to

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Please use the following information for the next 5 questions. Suppose the September Eurodollar futures contract has a price of 95.00. ABC company plans to borrow $120 million for 3 months in September at LIBOR, and ABC company intends to use the Eurodollar futures contract to hedge its borrowing rate. Question 4 (4 points) Assuming the true 3-month LIBOR is 1% in September. what is the settlement in dollars at expiration of the Eurodollar futures contract? (For purposes of this question, ignore daily marking to market on the futures contract.) ABC company will pay $120.000.000, ABC company will receive $120,000,000. ABC company will pay $300000. ABC company will receive $300,000. Question 5 (4 points) Assuming the true 3-month LIBOR is 1.5% in September, what is the settlement in dollars at expiration of the Eurodollar futures contract? (For purposes of this question, ignore daily marking-to market on the futures contract.) ABC company will pay $120.000.000. ABC company will receive $120,000,000. ABC company will receive $300.000, O ABC company will pay $300000

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