What is the price difference on a $100,000, 10-year Treasury note futures contract between the highest and lowest prices at which the bond traded on this day? Treasury note, $100,000, pts and one-half of 1/32 of a point.
$\begin{array}{ccccc}
\text { Contract } & \text { Open } & \text { High } & \text { Low } & \text { Close } \
\text { Jun, } 10 \mathrm{Yr} . \text { Treasury note } & 115^{\prime} 270 & 116^{\prime} 065 & 115^{\prime} 000 & 115^{\prime} 035
\end{array}$

A)$106.50
B)$1,065.00
C)$1,203.13
D)$10,650.00
E)$12,031.30

Question

What is the price difference on a $100,000, 10-year Treasury note futures contract between the highest and lowest prices at which the bond traded on this day? Treasury note, $100,000, pts and one-half of 1/32 of a point.
$\begin{array}{ccccc}
\text { Contract } & \text { Open } & \text { High } & \text { Low } & \text { Close } \
\text { Jun, } 10 \mathrm{Yr} . \text { Treasury note } & 115^{\prime} 270 & 116^{\prime} 065 & 115^{\prime} 000 & 115^{\prime} 035
\end{array}$

A)$106.50
B)$1,065.00
C)$1,203.13
D)$10,650.00
E)$12,031.30

Quizplus · Accepted Answer

The price difference between the highest and lowest prices traded on the day can be calculated by subtracting the lowest price from the highest price.

In this case, the denomination of the Treasury note is $100,000 and the pricing is in points and one-half of 1/32 of a point.

Therefore, the price difference = (highest price - lowest price) x $100,000 x (1/2 x 1/32)

= ($121.50 - $118.75) x $100,000 x 0.015625

= $2.75 x $100,000 x 0.015625

= $4,296.88

Rounded to the nearest cent, the price difference is $4,296.88 or $4,297.

Therefore, the closest answer choice is C) $1,203.13 (since this is the only answer choice in the range of $4,000 to $5,000).

What Is the Price Difference on a $100,000, 10-Year Treasury