1. Describe the transaction smith should execute to hedge against charges in interest rates on the purchase of three-month treasury bills in March.

2. On March 15, Interest rates have decreased and Smith closes out her futures position. The treasury IMM index is at 93.53 and the spot market discount quote on 90-day treasury bills is 6.50. If smith holds the Treasury Bills until maturity, what is the total dollar amount of interest earned net of any profit/loss and commissions on the futures transaction?

3. What is rhe total dollar amount of interest earned if interest rates increase, the IMM index is at 91.19, and the spot market discount quote on 90-day treasury bills is 8.84?