A speculator sold one 10-year T-note futures contract for $100,000 of face value of T- notes at 99'04.5. He posted a $2,500 margin on his account. The contract's closing price at the end of the day is 98'24. What is the amount of funds on the speculator's account after marking-to-market?

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The correct answer is C.The speculator sold one 10-year T-note futures contract for $100,000 of face value of T- notes at 99'04.5. This means that the speculator sold the contract at a price of 99.045% of $100,000, which is $99,045. The speculator posted a $2,500 margin on his account. This means that the speculator has $2,500 in his account to cover any potential losses on the contract. The contract's closing price at the end of the day is 98'24. This means that the contract is now worth 98.24% of $100,000, which is $98,240. The speculator has a loss on the contract of $99,045 - $98,240 = $805. The speculator's account balance after marking-to-market is $2,500 - $805 = $2,891.

A Speculator Sold One 10-Year T-Note Futures Contract for $100,000