You Are Long An $3 \times 6$ FRA and Long a Eurodollar Futures Contract Expiring in 3

Multiple Choice

You are long an $3 \times 6$ FRA and long a eurodollar futures contract expiring in 3 months. Assume the fixed rate in the FRA is the same as the rate locked-in via the eurodollar futures contract. If interest rates jump down by 100 basis points,

A) There is no net cash flow consequence because you are perfectly hedged.
B) You will lose more on the FRA than you will make on the eurodollar futures.
C) You will make more on the FRA than you will lose on the eurodollar futures.
D) You will lose less on the FRA than you will make on the eurodollar futures.