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

Question:

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 94. What is your loss or gain?

d. Assume that the Treasury bond futures price rises to 97. Mark your position to market.

LO.1

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Financial Markets And Institutions

ISBN: 9781259919718

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 25, 2024 11:01 AM

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

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Financial Markets And Institutions

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