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Question 6 (5 points): You hedged your exposure to declining interest rates by buying one December call on Eurodollar deposit futures at the premium quoted

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Question 6 (5 points): You hedged your exposure to declining interest rates by buying one December call on Eurodollar deposit futures at the premium quoted below. Maturity Call Strike price 975000 Call premium in basis points 29.75 December 2 If December arrives and Eurodollar Deposit Futures have a settlement index at expiration of 98.50, what is your profit or loss? (Remember to include the premium paid for the call option.)

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