1- Sherry has purchased a futures contract on Treasury bills that specified a price of 96.38. When the settlement date arrived, Sherry closed out her position by selling a Treasury bills futures contract for 95.64. Ignoring transaction costs, determine Sherry's profit or loss. Note: A T-bill contract has a face value of $1,000,000 and prices are quoted as 100 minus the T-bill discount rate.
2- The Bank of Scotland has decided to use a futures contract on Eurodollar CDs to protect the bank's position in U.S. Treasury notes. This action taken by the Bank of Scotland is known as