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Problem 4 You find the following current quote for the March T-Bond Future contract: $100,000; Pts 32nd, of 100% Open 89-12 High 89-24 Low 88-22

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Problem 4 You find the following current quote for the March T-Bond Future contract: $100,000; Pts 32nd, of 100% Open 89-12 High 89-24 Low 88-22 Settle 89-22 Open interest 55,210 Bank A thinks that interest rates are going to decrease from now until March. Should they go long or short on this contract? Explain. What is your intraday profit or loss if you decide to go short on this future contract at the open price? Will your margin account increase or decrease at the end of the day (between open and settle)? by how much

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