Solve the Following Questions..

c) On 10 January 2016, SCM Ltd. determined that it would need to borrow Sh.5 million on IS February 2016 at 90 day LIBOR plus 300 basis points. The loan would be an add on interest loan in which SCM Ltd. would receive Sh.5 million and pay it back plus interest on 16 May 2016. To manage the risk associated with the interest rate on 15 February 2016, SCM Lid., buys an interest rate call that expires on 15 February 2016 and pays off on 16 May 2016. The exercise rate is 5% and the option premium is Sh.10, 000. The current 90 days LIBOR is 5.25%. Assume that this rate, plus 300 basis points is the rate at which SCM Ltd. would borrow at, for any period of up to 90 days if the loan were taken out today. Interest is computed on the exact number of days divided by 360. Required: Determine the effective annual rate on the loan when the 90 day LIBOR on 15 February 2016 is at 6%.d) A futures contract has a current price of Sh. 212. The initial margin requirement is Sh. 10 and the maintenance margin requirement is Sh.8. An investor goes long 20 contracts and meets all margin calls and does not withdraw any excess margin. The futures price in the days following are shown below: Day Futures price (Sh.) 0 212 211 2 214 209 210 204 202 Required: The investor's total gain or loss by the end of day 6