If you sell in March a bond future contract for 110 that matures on June 30 of the same year, and at the maturity date the same future sells for 125, you have a ________ of $________.
A) loss; 15000
B) loss; 15
C) profit; 15000
D) profit; 15

Question

Quizplus · Accepted Answer

The difference between the selling price (110) and the price at maturity (125) is 15 points. Since each point represents $1,000, the total loss is 15 points * $1,000 = $15,000.

If You Sell in March a Bond Future Contract for 110