On January 1,the listed spot and futures prices of a Treasury bond were 93 8/32 and 93 13/32.You purchased $100,000 par value Treasury bonds and sold one Treasury bond futures contract.One month later,the listed spot price and futures prices were 94 and 94.09,respectively.If you were to liquidate your position,your profits would be
A) $500 loss.
B) $500 profit.
C) $50 loss.
D) $5,000 loss.
E) none of these.
Correct Answer:
Verified
Q32: The most recently established category of futures
Q33: Open interest includes
A) Only contracts with a
Q34: You purchased one corn future contract at
Q35: The process of marking-to-market
A) posts gains or
Q36: Normal backwardation
A) maintains that for most commodities,there
Q38: You sold one soybean future contract at
Q40: Contango
A) holds that the natural hedgers are
Q41: Consider the following:
Q42: Expiration-day volatility has been explained by
A) program
Q44: Delivery of stock index futures
A) is never
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents