The following trade quotes are for futures contracts on U.S. Treasury bonds.

	Open	High	Low	Settle
Sep	98-15	99-01	98-07	98-22
Dec	98-10	98-31	98-07	98-20
Mar	98-29	98-29	98-08	98-19

Calculate your futures profit if you SOLD the December T-bond futures at the HIGH and offset your position at the end of the trading day. Assume 10 contracts. Note, a price of 98-20 = 98 and 20/32% of the face value of $100,000. Thus, 98-20 = 98.625% of $100,000 = $98,625.

a.$343.75

b.$3,437.50

c.$98,968.75

d.$98,625.00

e.None of the above

2.Suppose the initial margin on the T-bond futures is $2,500, while the maintenance margin is $2,000. You BOUGHT the December contract at the LOW. What would be the futures price at which a margin call would be initiated?

a.$98,218.75

b.$500.00

c.$97,718.75

d.None of the above

Calculate your mark-to-market gain or loss - at the end of the trading day - if you BOUHGT the December T-bond futures at the OPEN. Again, assume 10 contracts.

a.Gain of $3,125

b.Gain of $98,312.50

c.Loss of $98,625.50 d.Loss of $312.50