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A British company named 3A has issued 20 million floating rate debt in US dollars. It...

A British company named 3A has issued 20 million floating rate debt in US dollars. It is anticipated that interest rates will be extremely volatile over the rest of the year. The current quote of Eurodollar futures contract is 92 and it will not change over the next 3 months. The company wishes to hedge its risk and be effectively protected at least until the end of 2020. Suggest a futures-based hedging strategy and calculate its cost.

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