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The company expects to borrow approximately $1 millionin three months. The current rate of interest is 6.00% p.a.but is forecast to rise. To hedge the

The company expects to borrow approximately $1 millionin 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.

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