Question
On 2 September, a 90-day bill issued with a maturity of 1 December had a quoted price of $92. One 2 October (i.e. 30 days
On 2 September, a 90-day bill issued with a maturity of 1 December had a quoted price of $92. One 2 October (i.e. 30 days passed), the price was $92.50. Assume the bill face value is $1mil. Suppose that Harold bought 15 bills on 2 September and sold on 2 October, how much has Harold made or lost? Choose the closest answer.
A.$107,487
B.-$7,166
C. -$107,487
D.$7,166
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
