Exhibit 20.2
Use the Information Below for the Following Problem(S)
A futures contract on Treasury bond futures with a December expiration date currently trade at 103:06. The face value of a Treasury bond futures contract is $100,000. Your broker requires an initial margin of 10%.
-Refer to Exhibit 20.2.Calculate the current value of one contract.
A) $100,000
B) $103,600.5
C) $103,187.5
D) $102,306.3
E) $104,293.5

Question

Quizplus · Accepted Answer

Current price is 103 6/32 percent of face value of $100,000
= 1.031875 × 100,000 = $103,187.50

Exhibit 20.2 Use the Information Below for the Following Problem(S)