Question: Your company has set up a US$ commercial paper program in the amount of $75 million U.S. and is turning it over every 30 days.

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Your company has set up a US\$ commercial paper program in the amount of $75 million U.S. and is turning it over every 30 days. Recent economic predictions have noted that interest rates will continue to rise over the next year (the Fed is predicting 3 more interest rate hikes in 2022/23). Set up a hedge structure (note the number of contracts you will have to use for each month) using one month SOFR futures (contract size is $4,167 quoted price) - note the percentage hedged

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