The purchaser of a T-bond futures contract priced at 101-16 at the time of sale agrees to deliver $100,000 face value Treasury bonds in exchange for receiving $101,500 at contract maturity.

Question

Quizplus · Accepted Answer

The purchaser of a T-bond futures contract agrees to buy, not deliver, Treasury bonds at the contract maturity, and the price would be based on the futures contract price, not a predetermined dollar amount.

The Purchaser of a T-Bond Futures Contract Priced at 101-16