On 4 March 20XX, the quoted price of the June 20XX 10-year bond futures contract was 97.2850. Arke Grossman believed that interest rates would decrease over the next month and she entered into five 10-year bond futures contracts in a position consistent with that view. On 11 March 20XX, she closed out her position at a quoted price of 97.3425. Ignoring transaction costs, how much has Arke made (or lost)? Show your calculations.

Answer rating: 100% (QA)

In future grossman Believed that interest rate will ... View the full answer