If you sell in March a bond future contract for 125 that matures on June 30 of the same year, and at the maturity date the same future sells for 135, you have a ________ of $________.
A) loss; 10000
B) loss; 10
C) profit; 10000
D) profit; 10

Question

Quizplus · Accepted Answer

Selling a bond future contract at a lower price than it matures results in a loss. The price difference is 10 (135 - 125), and since bond futures typically represent a significant amount, such as $100,000, a 10-point difference translates to a $10,000 loss.

If You Sell in March a Bond Future Contract for 125