Question: George Seby is thinking about doing some speculating in interest
George Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of Treasury bond futures should move from 92–15, their present quote, to a level of about 98. Given a required margin deposit of $1,350 per contract, what would George’s return on invested capital be if prices behave as he expects?
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