Using the chart below:

	Open	High	Low	Settle
Dec 2019	97.29	97.445	96.430	97.31
Mar 2020	98.12	99.395	98.070	98.13
Jun 2020	98.95	99.335	98.310	98.97
Sep 2020	98.87	99.270	98.235	99.86

1. What is the markets expectation of the annualized 3-month LIBOR in March 2020?
2. Assume an investor purchased one SEP 2020 contracts at the price listed above. If the 3-month LIBOR is 0.25% per annum in September 2020, calculate the investors gain/loss.
3. A MNC will borrow a 90-day floating-rate loan of $3,000,000 in Jun 2020. Construct a hedging strategy with Eurodollar futures for the MNC. Demonstrate that the use of Eurodollar futures would result in a fixed-rate loan regardless the actual LIBOR in June 1. Assume the actual 3-month LIBOR in June is either 1.13% per annum or 0.83% per annum with equal probability.

Please show all work, thanks