Suppose the December CBOT treasury bond futures contract has a quoted price of 80-07. If the annual
Question:
Suppose the December CBOT treasury bond futures contract has a quoted price of 80-07. If the annual interest rates go up by 1 percentage point, what is the gain or loss on the futures contract (assume $1,000 par value)? Must show work
a. Loss of $78
b. Gain of $78
c. Loss of $145
d. Gain of $145
e. None of the above
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b Gain of 78 Interest rates cause implied in...View the full answer
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Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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