Q1. What is the difference between a long forward position and a short forward position?

a. Both B and C

b. A. a long forward contract, is an agreement to buy the underlying asset for a certain price at a certain time in the future

c. C. a long forward contract, gives the holder the right to buy and sell the underlying asset for a certain price at a certain time in the future

d. B. a short forward contract, is an agreement to sell the underlying asset for a certain price at a certain time in the future e. Both A and B

Q2. The CME Group offers a futures contract on long-term Treasury bonds. Characterize how an investor is likely to use this contract for

	a.	Arbitrage between the spot and futures markets for Treasury bonds
	b.	All of the options
	c.	Speculate on the future direction of long-term interest rates
	d.	Hedge an exposure to long-term interest rates