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Problem:

Three months from today you plan to borrow $1.8 Billion for 6 months at LIBOR. You hedge 65% of your interest rate risk with a euro dollar futures contract priced at 99.2. If settled in arrears,

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Question: What is your payment if the 6-month LIBOR is .28% in two months?

Note: Please provide reasons to support your answer.

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Category:- Basic Finance
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