98.4= 100*( 1- futures interest rate) The futures interest rate is 0.0 16, that is, 1.6%.

B. The company needs to borrow money in the future and is worried about rising interest rates. Since the interest rate of Eurodollar futures is inversely proportional to the quotation, the company should enter the Eurodollar futures market as a short position.

C Maturity settlement price =100 * (1-0.013) = 98.7.