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where does the $1,800 come from? You hedge your banks exposure to declining interest rates by buying one June Treasury bond features contract at an
where does the $1,800 come from?
You hedge your banks exposure to declining interest rates by buying one June Treasury bond features contract at an opening price on april 10 quoted at (119-075), as presented in exhibit 8-2. It is now Tuesday June 10 and you discover that on Monday june 9, june T-bond futures opened at 115-165 and settled at 114-300. A) What is the profit or loss on your long position as a settlenet on June 10 ? B) If you deposited the required initial margin on April 10 and have not touched the equity account since making the cash deposit, what is your equity accocunt balance? A) 119+(7.7/32)1,000=119,234 114+(30/32)1,000=114,937.5 114,937.5119,234=4,296.5 B) 1,8004296.5=2496.5 Step by Step Solution
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