A new contract begins trading on an exchange with a clearing house. Below are the transactions that occurred. (1) At time 0 A goes long B goes short at 50 (2) At few seconds later C goes long and D goes short at 51 (3) A few seconds later E goes long and F goes short at 53 (4) A minute later A covers his position and D covers her position at 54 (5) A minute later C covers his position and G goes long at 55 (a) Explain what happens to open interest after each transaction. What is the final open interest. 7 (b) For all open transactions, identify the clearing houses counterparties? (Assume all trades have been done by members. ) (c) For each trader compute his or her profit or loss. If a position is open then indicate so. (d) If there were no margin requirements, and futures price drop rapidly, describe the credit risk faced by the clearing house