The $3-$month March $2024$ Euro interest rate futures contract on the Euro is currently

priced at $96\mathrm{.}00.$ The contract has a nominal value of $1$ million Euros.

$($i$)$ What are the two parties that buy$/$sell the Euro interest rate futures contract

agreeing to$?$

$($ii$)$ If you think the $3-$month interest rates on the Euro will be around $5\%$ in March would

you buy or sell the contract? $(2$ marks$)$

$($iii$)$ How much profit in Euros would you make if you take the action based on part $($ii$)$

and are proved right i$.$e$.$ the $3-$month interest rate on the Euro is $5\%$ in March. Show

your workings in full

$($iv$)$ What $3-$month Euro interest rate in March $2024$ will give a break$-$even position for

the buyer of the contract?

$($v$)$ What is the profit $(+)$ or loss $(-)$ for the seller of the contract if the $3$ month Euro

interest rate in March is $3\%?$