Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of $110-100.$ 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$.$ Glven your answer to part $($a$),$ calculate the net profit to Dudley Savings Bank if the price of the futures contracts increases to $110-$

$250.($Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations. Round your answer to $2$

decimal places.

c$.$ Given your answer to part $($a$),$ calculate the net profit to Dudley Savings Bank if the price of the futures contracts decreases to $109-$

$310.($Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations. Round your answer to $2$

decimal places.