Question: Question 11 (4 points) Two months from today you plan to borrow $8 million for 6 months at LIBOR. You hedge your interest rate risk

Question 11 (4 points) Two months from today you plan to

Question 11 (4 points) Two months from today you plan to borrow $8 million for 6 months at LIBOR. You hedge your interest rate risk with a euro dollar futures contract priced at 92. If settled in arrears, what is your payment if the 6-month LIBOR is 3.75% in two months? $18.500 $10,000 $21,700 $12,500

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