If You Buy Both a 30-Day Eurodollar CD Paying 6

Multiple Choice

If you buy both a 30-day Eurodollar CD paying 6.7 percent and a 90-day futures on a 90-day Eurodollar CD with a price implying a yield of 7.2 percent,what is your total annualized return? (Both yields are based on 360-day years. )

A) 7.25 percent
B) 7.07 percent
C) 10.15 percent
D) 7.75 percent
E) 6.95 percent