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.