You work in the finance department of a major company that has significant treasury operations. The company wishes to borrow funds in three months$$ time for a tenure of three months. The chief finance officer $($CFO$)$ is unsure about the interest rate outlook up to that period. Interest rates are currently at $4\mathrm{.}5\%,$ but recent economic figures have pointed to a speeding of the rate of growth in the economy. Therefore, the CFO has asked you as a risk specialist to prepare a report on how the company can use a Forward Rate Agreement $($FRA$)$ to hedge against the interest rate risk. Required: A$.$ Based on your report, assume the company decided to buy a $3$V$6$ US$$3,000,000$ FRA for a three$-$month period beginning three months from today and ending six months from today. The contract rate with the seller is $4\mathrm{.}875$ percent per annum and there are $183$ days in the six$-$month period. Further, assume that three months from today the settlement rate is $5\mathrm{.}5$ percent per annum. Calculate the settlement value of the contract. $[15$ Marks$]$ B$.$ If the CFO had also considered Eurodollar interest rate futures to hedge the position, describe in detail how the hedge could be set up$.[5$ Mark