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Suppose that it is February 20 and a treasurer realizes that on July 17 the company will have to issue $10 million of commercial paper

Suppose that it is February 20 and a treasurer realizes that on July 17 the company will have to issue $10 million of commercial paper with a maturity of 270 days. If the paper were issued today, the company would realize $9,600,000. (In other words, the company would receive $9,600,000 for its paper and have to redeem it at $10 million in 270 days^ prime time.) The September Eurodollar futures price is quoted as 96.00. How should the treasurer hedge the company's exposure if using the September Eurodollar futures contracts ?

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