What is the dollar amount chrysler will pay

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Chrysler LLC, is now looking to make the same transaction. The economy is starting to look weak, and it does not want to be exposed to possible interest rate shocks. 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 93.41.

In three months time Libor settles at 8.853% in the spot rate.

What is the dollar amount Chrysler will pay (or recieve) to settle this transaction three months from now? (Recall, the notional amount for this type of contract is $1,000,000.)

Reference no: EM132780842

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