Question 5 A company has a two-month $60 million floating loan with interest paid monthly at the one-month LIBOR plus 0.8%. The companys treasurer wants to hedge the companys exposure to interest rate risk and he considers the use of Eurodollar futures. The current one-month LIBOR is 3.45% and the Eurodollar futures price is quoted at 97.525. The treasurer should: (a)Take a long position in 20 Eurodollar futures contracts (b)Take a short position in 20 Eurodollar futures contracts (c) Take a long position in 40 Eurodollar futures contracts (d)Take a short position in 40 Eurodollar futures contracts (e)Take a long position in 181 Eurodollar futures contracts