A company expects to have a seasonal cash shortage of about $2million between March and May this year, and will need to issue 90 day commercial

​A company expects to have a seasonal cash shortage of about $2 million between March and May this year, and will need to issue 90 day commercial bills, accepted by Westpac, to fund the projected deficit.

​The futures market is quoting a price of 92.00 for the March bank bill contract.

​Show how the company can hedge its borrowings assuming bank bill rates will rise to 10% by March and the futures price just prior to the contract date is 90.00.