The company expects to borrow approximately $1 million in three months. The current rate of interest is 6.00% p.a. but is forecast to rise. To hedge the position, the company wishes to use 3 year Treasury bond futures contracts trading at 93.500. Calculate the profit or loss from the position in futures market if in 3 months the contracts are trading at 95.000.

Select one: a. 40,972.1 Loss b. 40,972.1 Profit c. 40,628.94 Loss d. 40,628.94 Profit