2. The 12-month LIBOR is 4% with continuous compounding, and the 12-month Eurodollar futures contract is traded at 95.25. What should the 15-month LIBOR be? A financial institution just entered into a long position in one 12-month Eurodollar futures contract. If the 3-month LIBOR in 12 months is 3.75% with continuous compounding, what will the payoff to the financial institution be? Ignore the interests on daily settlement. LIBORs are on Actual/365 day count. (10 marks) 2. The 12-month LIBOR is 4% with continuous compounding, and the 12-month Eurodollar futures contract is traded at 95.25. What should the 15-month LIBOR be? A financial institution just entered into a long position in one 12-month Eurodollar futures contract. If the 3-month LIBOR in 12 months is 3.75% with continuous compounding, what will the payoff to the financial institution be? Ignore the interests on daily settlement. LIBORs are on Actual/365 day count. (10 marks)