Suppose you purchase a Treasury bond futures contract at a price of 95 percent of the face

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Suppose you purchase a Treasury bond futures contract at a price of 95 percent of the face value, $100,000. (LG 10-3)

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

b. Assume that the Treasury bond futures price falls to 94 percent.

What is your loss or gain?

c. Assume that the Treasury bond futures price rises to 97. What is your loss or gain?

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Financial Markets And Institutions

ISBN: 9781259919718

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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