You are given the following quote for Eurodollar futures prices on Wednesday, 10/21/20:

OCT 20 Open 98.9800, High: 98.9900, low: 98.8800, Last: 98.8925, Change -.0800, Settle 98.9100, Estimated Volume 115,807, Prior Day Open Interest 514,892

You

NOV 20 Open: 99.2700, High: 99.2750, low: 99.1350, Last: 99.1900, Change: -.1050, Settle: 99.1900, Estimated Volume: 88,625, Prior Day Open Interest: 136,818

DEC 20, Open: 99.4500, High: 99.4550, low: 99.3600, Last: 99.4150, Change: -.0450, Settle: 99.4150, Estimated Volume: 343,832, Prior Day Open Interest: 1,575,169

a)John Jones wants to hedge a floating rate interest payment on a $3.2 million loan.The next quarterly interest payment is determined according to a 3-month LIBOR on Nov 1, 2020.How could he use Eurodollar futures to do it (long/short, how many contracts, contracts maturity)?

b)If he entered into the futures position at Monday close of 99.25, what would be his cash flow due to marking to market on Tuesday and on Wednesday?

c)What is the value of his futures position on Monday?

d)If on Nov 1, 2020 the 3-month LIBOR turns out to be 1% p.a., Eurodollar futures price 99.05, what would be the total cost to John Jones taking into account gains/losses on his hedge, plus the interest payment (disregard time value of money)?