A hedger takes a short position in five T-bill futures contracts at the price of 98 5/32.

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A hedger takes a short position in five T-bill futures contracts at the price of 98 5/32. Each contract is for $100,000 principal. When the position is closed, the price is 95 12/32. What is the gain or loss on this transaction?

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Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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Question Posted: Nov 12, 2012 01:15 AM

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A hedger takes a short position in five T-bill futures contracts at the price of 98 5/32.

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Financial Markets And Institutions

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