If a futures contract for U.S. Treasury bonds decreases by "17" in the financial page listings, the price of the contract decreased by:
A) $531.25.
B) $170.00.
C) $340.00.
D) $1700.00.

Question

Quizplus · Accepted Answer

The price of a U.S. Treasury bond futures contract is quoted in points and thirty-seconds of a point. A decrease of "17" means a decrease of 17/32 of a point. Since each point is worth $1,000, and there are 32 thirty-seconds in a point, each thirty-second is worth $31.25. Therefore, a decrease of 17 thirty-seconds is 17 * $31.25 = $531.25.

If a Futures Contract for U