Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of 122 100. Dudley Savings thinks interest rates will go down over the period of investment. The face value of the bond underlying the futures contract is $100,000

b. Given your answer to part (a), calculate the net profit to Dudley Savings Bank if the price of the futures contracts increases to 122 230. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) c. Given your answer to part (a), calculate the net profit to Dudley Savings Bank if the price of the futures contracts decreases to 121 290. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

2. =(122+230/320-122-100/320)/100*100000=406.25 Profit of 406.25

3. =(121+290/320-122-100/320)/100*100000=-406.25 Loss of 406.25

The Answers are listed above, my question is, where does the numbers of 320 come from? Please explain step by step. Thank you