Suppose an FI purchases a $20-$year Treasury bond futures contract

at $95.$

a$.$ What is the FI's obligation at the time the futures contract is

purchased?

b$.$ If an FI purchases this contract, in what kind of hedge is it

engaged?

c$.$ Assume that the Treasury bond futures price falls to $94.$ What is

the loss or gain?

d$.$ Assume that the Treasury bond futures price rises to $97.$ Mark to

market the position.