December 2023 FTSE 100 stock index futures contract

The December 2023 FTSE 100 stock index futures contract is reading 5850 while the cash index is reading 5800. The futures contract is worth £10 per point.
i. Explain why the FTSE futures contract is at a forward premium.
ii. You have £10 million of funds invested in FTSE 100 stocks under management and are concerned about a fall in the market by December expiration to 5500. Describe the hedging strategy that you may adopt to protect your fund against such a fall.
iii. You are pessimistic about the market prospects and predict that the FTSE 100 index will be reading 5400 by expiration. Describe the speculative strategy that you would adopt and the risks that you run.