Question38 You are the treasury manager of an Australian bank. The bank will need to borrow $16,000,000 in two months’ time by issuing 90-day bank bills. The current interest rate is 7.00%, and the quoted price for 90-day bank-accepted bill futures contracts expiring in three months is 92.30. (Assume 365 days in a year, each futures contract has a standard face value of $1,000,000, and the price quotation is based on yield.) (a) Today, what position would you take in the futures market to hedge this risk?Enter "1" for buy/long futures contracts or "2" for sell/short futures contracts [input] (b) After two months, interest rates fall to 6.75 % and the quoted price for bank-accepted bills futures contracts is 92.8. What is the profit or loss on the futures market? (round your answer to two decimal places, for a loss enter a negative number) [input] What is the profit or loss on the physical market? (round your answer to two decimal places, for a loss enter a negative number) [input] (c) Was this a perfect hedge? Enter “1” for yes and “2” for no [input] Maximum marks: 4.72 Flag question undefinedMultiple fill-in-the-blank