Answer all Questions: $18$ marks

Part $1$: Forward contracts have limited secondary markets. This means

$,$ and that is because

$.$

Part $2$: Futures contracts have lower default risk compared to forward contracts because

$.$

Part $3$: On February $162023,$ Lenards Investments Inc. purchased $67$ of the Montreal Exchange futures contracts written on the Government of Canada $15-$year marketable bond that matures in December $2030.$ The bond futures traded at $104,441$ for the $$100,000$ face value on the Montreal Exchange and mature on September $21,2023.$ Scotia Capital Inc. had sold $67$ of the same futures contract on the Montreal Exchange:

a$)$ Lenards Investments Inc. has

and Scotia Capital Inc. has

$.$

b$)$ If on September $212023$ bond dealers are trading the Government of Canada $15-$year marketable bond that matures in December $2030$ at $105,508$ for a $$100,000$ face value, thenddd