Themes & Analytics Chapter $13$A $($Answer all three parts$).$

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 $$4$ million 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 $$101,640$ for the

$$100,000$ face value on the Montreal Exchange and mature on September $21,2023.$ Scotia Capital Inc. had sold $40$ 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 $$101,825$ for a $$100,000$ face value, then Lenards Investments Inc. has