44. A company has an existing $900,000 promissory note facility, which it will roll over in 90

days. It is concerned that interest rates will rise before the roll-over date so it shorts a 90-day

bank-accepted bill futures contract at 92.50. Three months later, the company closes out its

futures position at 91.75. Using the following data, calculate the profit or loss position of the

futures transactions (exclude the PN exposure from your calculations). (Disregard margin

calls and transaction costs. Remember that BAB futures traded on the ASX/SFE have a notional

principal of $1 million.)

A. $1,601.58 profit

B. $1,601.58 loss

C. $1,779.54 profit

D. $1,779.54 loss

answer is C, thanks