You intend to hedge a floating rate payment on a $50 Million notional with a reset date of 3/18/2015 and payment date of 6/20/2015. The interest rate of the payment will equal 3 month LIBOR as of 3/18/2015. You short 50 EDH5 contracts at 99.25. What is your net payment (loan payment + futures P/L) if 3 month Libor on 3/18/2015 turns out to be 0.9%?
A) 117,500.00
B) 99,305.55
C) 98,750.00
D) 98,000.00