Question 8 You are given the following data on the 3 month Euribor interest rate futures contract. The contract has a notional size of l million. Euribor futures contract June 96.0 (i) Explain what the sale of such a contract implies [2 marks] (ii) If you think the 3 month interest rate in June will be 3% would you buy or sell the contract? Explain your reasoning and the prots you can expect if you are correct. [4 marks] (iii) Briey explain how a Corporate Treasurer who is looking to borrow 2 million of funds for 3 months from June might use the above contract to hedge interest rate risk. [4 marls]