Question 3 (4 points)

1. Suppose you buy an asset at $70 and sell a futures contract at $72. What is your profit if, prior to expiration, you sell the asset at $75 and the futures price is $78?
2. Suppose the spot price for an asset is $146 and you buy a futures contract at a futures price of $150. If the futures price changes to $147, what is the value of the futures contract an instant before it is marked-to-market?