1. A finance manager of a large corporation was informed that the firm would require to borrow one millions funds in three months time. Current interest rates are based on the three-month KLIBOR rate of 4% per annum. He expects interest rate to increase during these periods, he decided to lock in the current interest rate. He can do so by:
a. selling 3-month KLIBOR futures contract.
b. buying 3-month KLIBOR futures contract.
c. buying and selling corresponding 3-month futures contracts.
d. selling 3-month KLIBOR spot contract.