Use the quotes of Eurodollar futures contracts traded on the Chicago Mercantile Exchange as shown below to answer the following questions:

a. What is the annualized discount yield based on the €œlow€ index price for the nearest
March contract?
b. If your financial firm took a short position at the high price for the day for 15 contracts, what would be the dollar gain or loss at settlement on June 09?
c. If you deposited the initial required hedging margin in your equity account upon taking the position described in (b), what would be the marked-to-market value of your equity account atsettlement?

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Open High Low Settle Chg High Lifetime Low Open Int HighLow Eurodollar (CME)-$1,000,000, pts. of 100% Jun 08 97.2725 97.2875 97.2025 97.2150-0520 98.2550 Jly 08 97.2150 97.2250 97.0900 97.1200 .1150 98.1850 Aug 08 97.1200 97.1200 96.9500 96.9850 -2150 98.2200 Sep 08 97.1600 97.1850 96.8300 96.8850 2850 98.3350 Dec 08 96.9750 97.0050 96.5500 96.6050 3800 98.2650 Mar 09 96.8850 96.9200 96.4000 96.4550-4400 98.1850 Jun 09 96.6900 96.7350 96.2200 96.2600-4500 98.0000 Sep 09 96.4600 96.4900 96.0200 96.0450-4200 97.7700 Dec 09 96.1650 96.2000 95.7750 95.8000-3700 97.5050 Mar 10 95.9500 95.9850 95.5900 95.6150-3350 97.2750 91.6800 1,264,397 97.0300 13,725 96.9500 2,929 91.6800 1,453,920 91.5700 1,384,300 91.5750 1,229,271 91.3100 985,412 91.2600 817,642 91.1600 607,401 91.4850 474,017 ow