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 1 (4 points) What rate can ABC company secure? (i.e., it refers to the 3-month borrowing rate.) O 12.5% O5% O 1.25% 09.5% Question 2 (4 points Will ABC company be long or short the Eurodollar futures contract? it cannot be determined. Long Short Question 3 (4 points) How many contracts will ABC company enter into? 120 O 1.2 O12 O 0.12 Question 4 (4 points) Assuming the true 3-month LIBOR is 12 in September, what is the settlement in dollars at expiration of the Eurodollar futures contract? (For purposes of this question ignore daily marting to market on the futures contract) O ABC company will pay $120,000,000 O ABC company will receive $120.000.000 O ABC company will pay $300000. O 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.) O ABC company will pay $120.000.000 ABC company will receive $120.000.000 ABC company will receive $300,000. ABC company will pay $300000