The 9-month LIBOR rate is 5%, and the 6-month LIBOR rate is 4%, on the basis of continuous compounding and 365 days a year. Use this information to answer this and the next three questions. The forward rate on a 3 month investment that starts in 6 months on a quarterly compounded basis and a 360 day year is closest to: O a. 7.0000% Ob. 6.9649% Oc. 7.0616% The 3-month Eurodollar futures price quote for a contract with a delivery date in 6 months should be O a 93.0000 O b. 93.0351 Oc 92.9384 The 3-month Eurodollar futures price quote for a futures contract with a delivery date in 6 months is 94. The size of the Eurodollar futures contract is $1 million. Use this information to answer this and the next question Which of the following is the correct arbitrage strategy? O a. Borrow at the 9 month LIBOR rate, invest at the 6 month LIBOR rate, buy the Eurodollar futures contract Ob. Borrow at the 9 month LIBOR rate, invest at the 6 month LIBOR rate, sell the Eurodollar futures contract OC. Invest at the 9 month LIBOR rate, borrow at the 6 month LIBOR rate, sell the Eurodollar futures contract In six months, a treasurer will issue commercial paper with a face value of $10 million and a maturity of 6 months. If the commercial paper were issued right away, it would have a market value of $9.417,645. The treasurer should hedge its interest rate risk by: O a Buying 9.5611 Eurodollar futures contracts Ob. Selling 9.5611 Eurodollar futures contracts OC. Selling 19.1221 Eurodollar futures contracts