On January 1, the listed spot and futures prices of a Treasury bond were 95.4 and 95.6.You sold $100,000 par value Treasury bonds and purchased one Treasury bond futures contract.One month later, the listed spot price and futures prices were 95 and 94.4, respectively.If you were to liquidate your position, your profits would be
A) $125 loss.
B) $125 profit.
C) $1,060.50 loss.
D) $1,062.50 profit.
E) None of the options
Correct Answer:
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