1. Calculate the value of a 10-year Treasury futures contract (priced
in points, 32nds of 100%) after settlement on day 2 if the contract
was
purchased for 102-17, first trading day's settlement was 103-08, and
the second day's settlement was 103-27.  The minimum tick size (1/32)
movement is $31.25.

2. To hedge against falling interest rates, would an investor buy
interest rate futures or sell interest rate futures?  In doing so, is
the investor transferring the futures risk premium to the speculator
or is the investor retaining the futures risk premium but offsetting
the falling interest rate risk?