1. A trader got a hint that the interest rates are likely to fall over the next few months. Assume that today is 1st of June and 3-month KLIBOR spot quoted at 4.5%, while a September 3-month KLIBOR futures is 95.00. On the 21st Sept, the interest rate goes down by 1%. Calculate the profit/loss for the trader if he had Long 3 contracts September 3-month KLIBOR futures today.

a. Profit of RM11,250

b. Loss of RM11,250

c. Profit of RM3,750

d. Loss of RM3,750

2. Table below shows the speculating activities by a bullish trader of FCPO market (assume no transaction cost, ignore margin):

Date	Trade activities (price in RM per metric ton)	Closing price (RM)
25 May	Buy 3 contracts @ RM6,690	6,680
26 May	-	6,750
27 May	Buy 5 contracts @ RM6,700	6,720
30 May	-	6,770
31 May	Sell 8 contracts @ RM6,850	6,830

Calculate the profit/loss on these speculating activities after the trader closed all of his positions.

a. Profit RM6,500

b. Profit 7,750

c. Profit RM30,750

d. Profit RM25,000

3. A trader got a hint that the interest rates are likely to fall over the next few months. Assume that today is 1st of June and 3-month KLIBOR spot quoted at 4.5%, while a September 3-month KLIBOR futures is 95.00. On the 21st Sept, the interest rate goes down by 1%. Calculate the profit/loss for the trader if he had Long 3 contracts September 3-month KLIBOR futures today.

a. Profit of RM11,250

b. Loss of RM11,250

c. Profit of RM3,750

d. Loss of RM3,750