Outline appropriate strategy using futures for each of the following situations. Do not draw graphs. (Each sub-question carries two marks)

a) A palm oil refiner plans to purchase 100 tons of Crude Palm Oil (CPO) in three months.

b) A banker whose cost of funds is fixed has agreed to lend RM 12 million in three months at KLIBOR + 2%.

c) A speculator believes that FBM KLCI is about to rise sharply over the next three months.

d) A speculator believes that interest rates are likely to fall over the next three months.

e) A trader finds that the three-month SIF contract is traded at 806 points, whereas it should have a fair price at 818 points.