What is the final settlement price on the futures contracts

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Reference no: EM131236054

The December Eurodollar futures contract is quoted as 98.40 and a company plans to borrow $8 million for three months starting in December at LIBOR plus 0.5%.

(a) What rate can the company lock in by using the Eurodollar futures contract?

(b) What position should the company take in the contracts?

Reference no: EM131236054

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