If you sell 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 difference between the selling price (150) and the price at maturity (170) is 20 points. Since each point on a bond future typically represents $1,000, the total loss is 20 points * $1,000 = $20,000.

If You Sell in March a Bond Future Contract for 150