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The December Eurodollar futures contract is quoted as 98.10 and an investor plans to lock...

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Accounting

The December Eurodollar futures contract is quoted as 98.10 and an investor plans to lock in the interest that will be earned on $4 million for three months starting on December 14. The investor goes long 5 December contracts. On December 14, 3-month LIBOR interest rate is 1% so the final settlement price is 99.00. Calculate the investors profits or losses (P/L).

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