Dudley Savings Bank wishes to take a position in Treasury bond

futures contracts, which currently have a quote of $124100.$

Dudley Savings thinks interest rates will go down over the period

of investment. The face value of the bond underlying the futures

contract is $$100,000.$

$$

a$.$Should the bank go long or short on the

futures contracts?

b$.$Given your answer to part $($a$),$ calculate

the net profit to Dudley Savings Bank if the price of the futures

contracts increases to $124240.($Negative amount

should be indicated by a minus sign. Do not round intermediate

calculations. Round your answer to $2$ decimal places. $($e$.$g$.,$

$32\mathrm{.}16))$

c$.$Given your answer to part $($a$),$ calculate

the net profit to Dudley Savings Bank if the price of the futures

contracts decreases to $123300.($Negative amount

should be indicated by a minus sign. Do not round intermediate

calculations. Round your answer to $2$ decimal places. $($e$.$g$.,$

$32\mathrm{.}16$