Question
Assume that a futures contract on Treasury bonds with a face value of $100,000 is purchased at 92-20. If the same contract is later sold
Assume that a futures contract on Treasury bonds with a face value of $100,000 is purchased at 92-20. If the same contract is later sold at 94-12, what is the gain, ignoring transactions costs?Note: These Treasury bond prices are quoted in 32nds of a point.
A. $1,750.00
B $1,960.00
C. $1,875.00
D. $1,625.00
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
