Suppose the December CBOT treasury bond futures contract has a quoted price of 80-07. If the annual

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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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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Apr 12, 2012 06:04 AM

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Suppose the December CBOT treasury bond futures contract has a quoted price of 80-07. If the annual

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b Gain of 78 Interest rates cause implied in...View the full answer

Fundamentals of Investing

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