You find the following current quote for the March T-Bond contract: $100,000; Pts 32^nd, of 100% You went long in the contract at the open. Which of the following is/are true?
I. At the end of the day, your margin account would be increased.
II. 55,210 contracts were traded that day.
III. You agreed to deliver $100,000 face value T-Bonds in March in exchange for $89,120.
IV. You agreed to purchase $100,000 face value T-Bonds in March in exchange for $89,375.

Question

You find the following current quote for the March T-Bond contract: $100,000; Pts 32^nd, of 100%

You find the following current quote for the March T-Bond contract: $100,000; Pts 32<sup>nd</sup>, of 100% You went long in the contract at the open. Which of the following is/are true? I. At the end of the day, your margin account would be increased. II. 55,210 contracts were traded that day. III. You agreed to deliver $100,000 face value T-Bonds in March in exchange for $89,120. IV. You agreed to purchase $100,000 face value T-Bonds in March in exchange for $89,375. A) I, II, and III only B) I, II, and IV only C) I and III only D) I and IV only E) IV only

You went long in the contract at the open. Which of the following is/are true?
I. At the end of the day, your margin account would be increased.
II. 55,210 contracts were traded that day.
III. You agreed to deliver $100,000 face value T-Bonds in March in exchange for $89,120.
IV. You agreed to purchase $100,000 face value T-Bonds in March in exchange for $89,375.

Quizplus · Accepted Answer

I. At the end of the day, your margin account would be increased as you went long in the contract. II. The information provided does not give any indication of the number of contracts traded, so this statement is false. III. The quote given indicates that the price is $100,000 and the points are 32^nd. This means that the price is 100-32 1/32 + 1/256 + 1/8192 + 1/65536 + 1/1048576 - 1/33554432 - 1/2147483648 = 99 and 28/32 + 7/256 + 1/8192 + 1/65536 + 1/1048576 - 1/33554432 - 1/2147483648. Therefore, the statement is false. IV. The quote given indicates that the price is $100,000 and the points are 32^nd. This means that the price is 100-32 1/32 + 1/256 + 1/8192 + 1/65536 + 1/1048576 - 1/33554432 - 1/2147483648 = 99 and 28/32 + 7/256 + 1/8192 + 1/65536 + 1/1048576 - 1/33554432 - 1/2147483648. Therefore, you agreed to purchase $100,000 face value T-Bonds in March in exchange for $89,375. This statement is true.

You Find the Following Current Quote for the March T-Bond