The company expects to invest approximately $1 million in three months in corporate bonds. The current rate of interest is 6.50%. To hedge the position, the company wishes to use 3 year Treasury bond futures contracts trading at 93.800. Calculate the profit or loss from the position in futures market if in 3 months the contracts are trading at 91.500.

a.

$-59597.47

b.

$-600963.24

c.

$60096.32

d.

$-6009.63

e.

$56205.28