Interest rate management (Article on September 11)

Recently there is an ACCA article on Interest Risk Management.

The question asked the the ways the interest rate risk may be managed and one of it was using Financial future. In the question:-

Date 15/12 LIBOR 6.00%

Future Interest 6.21%
Basis 0.21%
0.21% x 0.5/3.5 = 0.03 + 5.5% = 5.53% as buying rate.

My 1st question is how do we get the x 0.5 / 3.5 <

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where do the 0.5 and 3.5 came from? I try to compute and search for formula but to no avail.
2nd question was on the Traded Option methods:-

The question opt for MARCH PUT at 94.00 (page 7), thus the cap value at 6%. My question is how do we compute the Cash Received at (7.03 – 6.00)/ 0.01 x $12.50 x 40. Is the 0.01 a predetermined figure or how this figure was derived?

Thanks for your help.