The portfolio manager for Conyers Bank wishes to sell the entire issue of Treasury bonds at a current price of 87-05/32^nds. What will be the gain or loss on the cash position since the futures contract was placed? (That is, since the bonds were valued at $28,387,500.) A)Loss of $3,834,375. B)Loss of $3,853,125. C)Gain of $2,240,625. D)Gain of $3,853,125. E)Loss of $2,240,625.

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The Answer of The portfolio manager for Conyers Bank wishes to sell the entire issue of Treasury bonds at a current price of 87-05/32^nds. What will be the gain or loss on the cash position since the futures contract was placed? (That is, since the bonds were valued at $28,387,500.) A)Loss of $3,834,375. B)Loss of $3,853,125. C)Gain of $2,240,625. D)Gain of $3,853,125. E)Loss of $2,240,625.

The Portfolio Manager for Conyers Bank Wishes to Sell the Entire