If you sell a $100,000 interest-rate futures contract for 105,and the price of the Treasury securities on the expiration date is 108,your ________ is ________.
A)profit;$3000
B)loss;$3000
C)profit;$8000
D)loss;$8000

Question

Quizplus · Accepted Answer

The futures contract was sold at 105, but the price at expiration is 108. This means the price increased by 3 points (108 - 105). Since each point represents $1,000 for a $100,000 contract, the loss is 3 x $1,000 = $3,000.

If You Sell a $100,000 Interest-Rate Futures Contract for 105,and