i$)$ Explain the basic mechanics of a forward transaction.

ii$)$ Explain how a futures exchange operates as a clearinghouse for traders.

iii$)$ Explain, with some numeric data, the mechanics of a short hedge in the futures markets, its limitations$.$

iv$)$ Explain the basic distinctions between forward and futures transactions.

v$)$ What are key advantages for investors of trading futures on organised exchanges?

vi$)$ Explain, with some numeric data, how commodity futures contracts might enable both the supplier and user of a given commodity to manage pricing risks.

vii$)$ Explain how to calculate the mean and variance of a portfolio of two risky assets.

viii$)$ Explain and illustrate, for portfolio of two risky assets the portfolio opportunity set, and the portfolio efficient frontier.

ix$)$ Explain how you would calculate the minimum variance portfolio in this two$-$asset case.