You find the following current quote for the March T-bond contract: $100,000; Pts 32nd,of 100 percent.

You went long in the contract at the open. Which of the following is/are true?
I. At the end of the day,your margin account would be increased.
II. 55,210 contracts were traded that day.
III. You agreed to deliver $100,000 face value T-bonds in March in exchange for $89,120.
IV. You agreed to purchase $100,000 face value T-bonds in March in exchange for $89,375.

Question

You find the following current quote for the March T-bond contract: $100,000; Pts 32nd,of 100 percent.

You went long in the contract at the open. Which of the following is/are true?
I. At the end of the day,your margin account would be increased.
II. 55,210 contracts were traded that day.
III. You agreed to deliver $100,000 face value T-bonds in March in exchange for $89,120.
IV. You agreed to purchase $100,000 face value T-bonds in March in exchange for $89,375.

Quizplus · Accepted Answer

I. At the end of the day, your margin account would be increased because you went long in the contract and the quote indicates an increase in price.
II. The quote does not provide any information on the number of contracts traded, so this statement cannot be determined.
III. You did not agree to deliver T-bonds; instead, you went long in the contract and agreed to buy T-bonds in March.
IV. This statement is true as you went long in the contract, agreeing to purchase the T-bonds in March in exchange for the given price.

You Find the Following Current Quote for the March T-Bond