What did chrysler gain or lose in given condition

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Question: Chrysler LLC. Chrysler LLC, the now privately held company sold off by Daimler Chrysler, must pay floating rate interest three months from now. It wants to lock in these interest payments by buying an interest rate futures contract. Interest rate futures for three months from now settled at 93.07, for a yield of 6.93% per annum.

a. If the floating interest rate three months from now is 6.00%, what did Chrysler gain or lose?

b. If the floating interest rate three months from now is 8.00%, what did Chrysler gain or lose?

Reference no: EM131676748

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