a) On Oct 2020, a banker commits to buy a pool of mortgaged securities on March 2021 at set price , and hoping to resell them in market at a higher price. The banker could take a profit if the value of mortgage pool soars by March 2021. The price of mortgage securities increases if their interest rates fall(and vice versa). To hedge his exposure to the downside risk(loss), the banker takes a position in interest futures that will produce a gain in the futures market if rates do rise. He enters into the futures position for 6 months that settles at 97.95. How much gain(%) the futures position will produce if the floating rate is 4.5% in six month from now?

(Answer with 2 decimal figure; DO NOT use % sign)

b) in the previous question, the banker must take a ..... position to hedge his exposure to interest rate volatility.? short/long?