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You were just notified that you will receive $100,000 in two months from the estate of a deceased relative. You want to invest this money

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You were just notified that you will receive $100,000 in two months from the estate of a deceased relative. You want to invest this money in safe, interest-bearing instruments, so you decide to purchase five-year Treasury notes. You believe however, that interest rates are headed down, and you will have to pay a lot more in two months than you would today fo five-year Treasury notes. You decide to look into futures, and find a quote of 101-10.3 for five-year Treasuries deliverable in two months (contracts trade in $100,000 units and require an initial margin is $680). What does the quote mean in terms of price, and how many contracts will you need to buy? How much money will you need to buy the contract, and how much will you need to settle the contract? 5-year Treasury notes are quoted at a par value of $100,000. Which of the following is the best answer? (Select the best answer below.) A. Prices are quoted in increments of 1/32 of 1%, so the quote of 101 - 10.3 translates into 101 - 10.3/32, which converts to a quote of 101.32188% of par. Five-year Treasury notes have a par value of $100,000, so you will need to buy one contract. B. Prices are quoted in increments of 1/100 of 1%, so the quote of 101 - 10.3 translates into 101 - 10.3/100, which converts to a quote of 101.1030% of par. Five-year Treasury notes have a par value of $10,000, so you will need to buy ten contracts OC. Prices are quoted in increments of 1/100 of 1%, so the quote of 101 - 10.3 translates into 101 - 10.3/100, which converts to a quote of 101.1030% of par. Five-year Treasury notes have a par value of $100,000, so you will need to buy one contract D. Prices are quoted in increments of 1/32 of 1%, so the quote of 101 - 10.3 translates into 101 - 10.3/32, which converts to a quote of 101.32188% of par. Five-year Treasury notes have a par value of $10,000, so you will need to buy ten contracts

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