If you buy in March a bond future contract for 150 that matures on June 30 of the same year, and on the maturity date the same future sells for 170, you have a ________ of $________.
A) loss; 20000
B) loss; 20
C) profit; 20000
D) profit; 20

Question

Quizplus · Accepted Answer

The profit is calculated as the difference between the selling price and the buying price of the futures contract. Here, the selling price is 170 and the buying price is 150, resulting in a profit of 20. Since futures contracts are typically quoted in terms of a standard amount (often $1,000 per point), the profit is 20 points x $1,000 = $20,000.

If You Buy in March a Bond Future Contract for 150