Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you believe interest rates will rise and you trade 2 December 2020 Treasury Bond futures contracts based on your expectation. At the time you

image text in transcribed
Suppose you believe interest rates will rise and you trade 2 December 2020 Treasury Bond futures contracts based on your expectation. At the time you make your initial transaction, the Dec 2020 Treasury Bond futures price is 179-02. In November of this year, you decide to closeout your futures position and realize your profit or loss on this trade. At the time you close out your position, the Dec 2020 Treasury Bond futures price is 176-30. After accounting for transaction fees of $15 per contract per roundtrip transaction, what is your profit or loss? Hint: A roundtrip transaction is a long followed by a short or a short followed by a long. Do not include any dollar sign in your answer. For example, if you believe you profited $2,112 on this contract, simply enter "2112" as the solution. If you believe you lost $2,112 on this contract, simply enter"-2112" as the solution

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Introduction To Institutions Investments And Management

Authors: Ronald W. Melicher, Edgar A. Norton

12th Edition

0471675792, 9780471675792

More Books

Students also viewed these Finance questions

Question

a sin(2x) x Let f(x)=2x+1 In(be)

Answered: 1 week ago

Question

=+v3. Determine if they are targeting the same audience.

Answered: 1 week ago

Question

=+1. Compare the copy on both sites. Are they alike or distinctive?

Answered: 1 week ago

Question

=+What kind of clients would work well in this medium?

Answered: 1 week ago