Angela buys a Trea sury bond futures agreement for $94,000. On the delivery date, the spot price

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Angela buys a Trea sury bond futures agreement for $94,000. On the delivery date, the spot price is $95,000. Does she win or lose? By how much?

If Angela bought the futures contract to hedge, can she lose? Explain. (Hint: What if she is willing to give up the opportunity for gain to reduce the risk of loss?)                    Appendix

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An Introduction To Financial Markets And Institutions

ISBN: 978-0765622761

2nd Edition

Authors: Maureen Burton ,Reynold F. Nesiba ,Bruce Brown

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