PLEASE HELP ME IN SOLVING THESE QUESTIONS

Question 1 (Problem Solving) Suppose a Financial Institution sells a Treasury bond futures contract at the price S90. The contract includes 1,000 Bonds.

a) What is the Fl's obligation at the time the futures contract is sold? b) Assume that the Treasury bond futures price falls to $80. What is the loss or gain? c) Assume that the Treasury bond futures price rises to S 100. What is the loss or gain? d) Explain Futures Contract.

Question 2 a) Explain how Credit risk can be hedged using forward contracts. b) Mention and explain two ways of hedging interest rate risk using futures contract.

Question 3 In each of the following cases indicate whether It would be appropriate (or an Fl to buy or sell a forward contract to hedge the appropriate risk.

a) An Insurance company plans to buy bonds in two months. b) A savings bank is going to sell Treasury securities it holds in its investment portfolio next month. c) A finance company has assets with a duration of six years and liabilities with a duration of 13 years.