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

Month	Open	High	Low	Last	Change	Settle	Estimated Volume	Prior Day Open Interest
OCT 20	98.9800	98.9900	98.8800	98.8925	-.0800	98.9100	115,807	514,892
NOV 20	99.2700	99.2750	99.1350	99.1900	-.1050	99.1900	88,625	136,818
DEC 20	99.4500	99.4550	99.3600	99.4150	-.0450	99.4150	343,832	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)?