The financial manager of Media Limited expects that the company will have surplus funds of $2.3 million in one month's time. She intends to use the funds to buy bank bills. Concerned that interest rates may fall, the manager decides to hedge and enters into 90-day bank bill futures contracts at 93.50. One month later, the funds are invested and the futures position is closed out at 92.95. Using the above data decide how many futures contracts should be bought or sold and calculate the profit or loss on the futures transactions. (Ignore margin calls and transaction costs.) $2623.94 profit

$3017.53 profit

$3017.53 loss

$2623.94 loss