QUESTION THREE a) If you buy a K100,000 June 2017 Treasury bond contract for K108,000 and the price of the Treasury bond at the expiration date is K102,000. What is your profit or loss on your contract? (10 Marks) b) Suppose the pension fund you are managing is expecting an inflow of K100,000 next year and you want to make sure that you earn the current interest rate of 8% when you invest the incoming funds. How would you use the futures market to do this? (10 Marks) [TOTAL: 20 MARKS]