Question: A corporation knows that in three months it will have $5 million to invest for 90 days at LIBOR minus 50 basis points and wishes

A corporation knows that in three months it will have $5 million to invest for 90 days at LIBOR minus 50 basis points and wishes to ensure that the rate obtained will be at least 6.5%. What position in exchange-traded interest-rate options should the corporation take?

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