Question: Please solve. Please show your work. Please explain your reasoning. An investor has agreed to LEND $10 million for 3-months in the future at a

Please solve.
Please show your work.
Please explain your reasoning.
Please solve.Please show your work. Please explain your reasoning. An investor has

An investor has agreed to LEND $10 million for 3-months in the future at a rate of (SOFR + 1%). What position should the investor take in the SOFR Futures contract to hedge against interest- rate changes? Answer in terms of LONG or SHORT position in the response box below

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