Walmart has a floating rate loan payment coming up in three months and wants to hedge this because they believe interest rates are going to go higher?

If the 3m short term interest rate is 0.36 %, what 3m futures price should they expect to see and should they buy or sell eurodollar futures contracts?

 

Put in the futures price as you normally would if you think they need to buy futures, or put it in as a negative number if you think they should sell futures?

Answer rating: 100% (QA)

The 3month futures rate should be equal to the current 3month rate plus the expected change in ... View the full answer