Portfolio revisions using bond futures contracts. Consider the following original portfolio and revise it with bond futures
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Portfolio revisions using bond futures contracts.
Consider the following original portfolio and revise it with bond futures contracts.
Stock 4,000,000
Bonds 4,000,000
Cash 4, 000 000
Total 12,000,000
Revise the above portfolio with bond futures contracts using Treasury bonds futures that are priced at 162-20. You decide to go long 12 Treasury bond futures contracts.
Treasury bond futures contracts are based on $100,000 par value. Show full calculation and show your revised portfolio including dollar values and percentages.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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