You are given the following quote for Eurodollar futures prices on Wednesday, 10/19/16:

Month	Open	High	Low	Last	Change	Settle	Estimated Volume	Prior Day Open Interest
NOV 16	99.1225	99.1225	99.1125	99.1150	-.0050	99.1125	25,595	172,387
DEC 16	99.0900	99.0900	99.0700	99.0800	-.0100	99.0800	229,984	1,658,503
JAN 17	99.0700	99.0700	99.0650	99.0650	-.0150	99.0650	198	6,100

1. John Jones wants to hedge a floating rate interest payment on a $2.1 million loan. The next quarterly interest payment is determined according to a 3-month LIBOR on December 1, 2016. How could he use Eurodollar futures to do it?

1. If he entered into the futures position at Monday close of 99.065, what would be his cash flow due to marking to market on Tuesday and on Wednesday?

1. What is the value of his futures position on Monday?

1. If on December 1, 2016 the 3-month LIBOR turns out to be 1.21% p.a., Eurodollar futures price 98.895 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)?