As you answer the question below, use a graph to show the win or the loss for Daimler in each case. Explain

what Daimler is afraid of and convey what was achieved by locking into the interest rate future. What does it

mean for Daimler Chrysler to lock in its interest rate with an interest rate future contract?

DaimlerChrysler Debt. Chrysler LLC$,$ the now privately held company sold off by DaimlerChrysler,

must pay floating$-$rate interest three months from now. 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

$93\mathrm{.}07,$ for a yield of $6\mathrm{.}93\%$ per annum.

a$.$ If the floating interest rate three months from now is $6\mathrm{.}00\%,$ what did Chrysler gain or lose?

b$.$ If the floating interest rate three months from now is $8\mathrm{.}00\%,$ what did Chrysler gain or lose?