Suppose instead the corporation hedges with March 2024 Eurodollar futures, which have an initial price of 95.00. It holds a constant futures position for the next eight months, and then closes out its futures position in June 2024, when the futures contracts fully mature. Furthermore, it borrows $5 million at SOFR + 1% in March, and repays the loan in June. 

 How many futures positions does it take? Is it short or long?

Answer rating: 100% (QA)

SOLUTION The corporation wants to hedge its 5 million Eurodollar borrowing in March 2024 The March 2... View the full answer