National Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of 117-10. National Savings thinks interest rates will go down over the period of investment. The face value of the bond underlying the futures contract is $100,000. a. Should the bank go long or short on the futures contracts? b. Given your answer to part (a), calculate the net profit to National Savings Bank if the price of the futures contracts increases to 117-23.

c. Given your answer to part (a), calculate the net profit to National Savings Bank if the price of the futures contracts decreases to 116 -29.