You intend to hedge a floating rate payment on a $50 Million notional with a reset date of 3/18/16 and payment date of 6/20/16. The interest rate of the payment will equal 3-month libor as of 3/18/16. You short 50 EDH7 contracts at 99.25. What is your net payment (loan payment + futures P/L) if 3m libor on 3/18/16 turns out to be .9%?
a. 117,500 b.
b. 99305.55
c. 98750
d. 980000