1. What role does the exchange play in futures market transactions?

2. How can a thrift institution guarantee its costs of funds for a period of time by using the futures markets?

3. Why do you think some futures contracts are more widely traded than others?

6. Explain the difference between a put and a call. Draw a diagram showing the payoffs of puts and calls at expiration. Draw it from the perspective of both the option buyer and the option seller.