Question
Suppose you sell a Treasury bond futures contract at a price of 98 percent of the face value, $100,000. What is your obligation when you
Suppose you sell a Treasury bond futures contract at a price of 98 percent of the face value, $100,000. What is your obligation when you purchase this futures contract?
Select one:
a. You are obligated to take delivery of a $100,000 face value 15-year Treasury bond at a price of $98,000 at contract maturity.
b. You are obligated to deliver a $100,000 face value 15-year Treasury bond at a price of $98,000 at contract maturity.
c. You are obligated to deliver a $100,000 face value 15-year Treasury.
d. You are obligated to take delivery of a $100,000 face value 15-year Treasury bond at a price of $95,000 at contract maturity.
e. None of the answers are correct
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