(This is one question split into three parts)

Suppose that it is February 20 and a treasurer realizes that on July 17 the company will have to issue $5 million of commercial paper with a maturity of 180 days. If the paper were issued today, the company would realize $4,820,000. (In other words, the company would receive $4,820,000 for its paper and have to redeem it at \$5,000,000 in 180 days time.) The cheapest to deliver bond has a duration of 7.5 and the portfolio a duration of 15. Question 1 1 pts The September Eurodollar futures price is quoted as 95. 1. Find the Eurodollar Futures Contract price (Note: round your answer to the nearest number) Question 2 1 pts Assume the price of the September Eurodollar futures contract is 909,852 2. How many futures contracts should the treasurer consider to hedge the company's exposure? (Note: round your answer to the nearest number) The September Eurodollar futures price is quoted as 94. 3. How should the treasurer hedge the company's exposure? Short or long the contracts? short long Suppose that it is February 20 and a treasurer realizes that on July 17 the company will have to issue $5 million of commercial paper with a maturity of 180 days. If the paper were issued today, the company would realize $4,820,000. (In other words, the company would receive $4,820,000 for its paper and have to redeem it at \$5,000,000 in 180 days time.) The cheapest to deliver bond has a duration of 7.5 and the portfolio a duration of 15. Question 1 1 pts The September Eurodollar futures price is quoted as 95. 1. Find the Eurodollar Futures Contract price (Note: round your answer to the nearest number) Question 2 1 pts Assume the price of the September Eurodollar futures contract is 909,852 2. How many futures contracts should the treasurer consider to hedge the company's exposure? (Note: round your answer to the nearest number) The September Eurodollar futures price is quoted as 94. 3. How should the treasurer hedge the company's exposure? Short or long the contracts? short long