Suppose that you purchase a Treasury bond futures contract at $95 per $100 of face value. (LG

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Suppose that you purchase a Treasury bond futures contract at $95 per $100 of face value. (LG 23-2)

a. What is your obligation when you purchase this futures contract?

b. If an FI purchases this contract, in what kind of hedge is it engaged?

c. Assume that the Treasury bond futures price falls to

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Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

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