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Portfolio revisions using bond futures contracts. 1. Consider the following portfolio and revise it with bond futures contracts. Stock 4,000,000 Bonds 4,000,000 Cash 4, 000

Portfolio revisions using bond futures contracts.

1. Consider the following portfolio and revise it with bond futures contracts.

Stock 4,000,000

Bonds 4,000,000

Cash 4, 000 000

Total 12,000,000

Treasury bonds futures are priced at 162-20. You decide to go long 12 bond futures contracts. T. bond futures are based on $100,000 par value.

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