Show the steps for questions 1-3, and provide a brief explanation in words. 1. Wang Jianlin must pay floating-rate interest six months from now on a bank loan of RMB 1 million. He wants to hedge this interest liability using an interest rate futures contract. Interest rate futures for six months from now settled at 96.00, for a yield of 4.00% per annum. a. Should Wang go long or short on interest rate futures? Explain why? (2) Answer: b. If the floating rate in three months is 5.00%, what did Wang gain or lose? (2 marks) Answer: C. If it is 3.00%, what did Wang gain or lose? (2 marks)