You intend to hedge a floating rate payment on a 50 million, Ask an Expert

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You intend to hedge a floating rate payment on a $50 Million notional with a reset date of 3/18/2015 and payment date of 6/20/2015. The interest rate of the payment will equal 3 month LIBOR as of 3/18/2015. You short 50 EDH5 contracts at 99.25. What is your net payment (loan payment + futures P/L) if 3 month Libor on 3/18/2015 turns out to be 0.9%?

A) 117,500.00

B) 99,305.55

C) 98,750.00

D) 98,000.00

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