You intend to hedge a floating rate payment

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Reference no: EM13870588

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%?

Reference no: EM13870588

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You intend to hedge a floating rate payment : 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 ..

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