Assume that a futures contract of Treasury bonds specifies a par value of

$100,000. A speculator purchased that futures contract at a price of 90% of the par value. One month later, the speculator closes out the position. At this time, the futures contract specifies a closing settlement price of 92,312% of the par value.

1. Is the trader taking a short financial position or a long financial position? Explain.
2. Is the trader realizing a profit to short or a profit to long? Explain.
3. Calculate the nominal profit of the trade. Show the math and indicate the units of measurement.
4. What is the specific category of this futures contract? Explain.