Suppose it is currently December and you participate a three-month borrowing need for $100,000,000 beginning in June. Suppose also that you can borrow at LIBOR, and wish to hedge the risk of interest-rate changes between now and June using euro-dollar futures. Suppose that the euro-dollar price of the June contract is currently $91.5. Assuming that the 3-month borrowing horizon has 90 days, what is the net cash outflow if the cost of borrowing is 7.75%?

a. $1,128,675.50 b. $1,144,755.87 c. $2,124,655.70 d. $2,254,674.83