22-69 The current price of June $100,000 T-Bonds trading on the Chicago Board of Trade is 109.24.What is the price to be paid if the contract is delivered in June?

Question

Quizplus · Accepted Answer

To calculate the price to be paid for the T-Bonds, we use the following formula: 
Price = (Price Quote/100) x Face Value 
In this case, the face value is $100,000. 
So, Price = (109.24/100) x $100,000 = $109,240. 
Therefore, the correct answer is B, $109,240.

22-69 the Current Price of June $100,000 T-Bonds Trading on the Chicago