Listed spot and futures prices of a treasury

Assignment Help Finance Basics
Reference no: EM131772189

On January 1, the listed spot and futures prices of a Treasury bond were 95.4 and 95.6. You sold $100,000 par value Treasury bonds and purchased one Treasury bond futures contract. One month later, the listed spot price and futures prices were 95 and 94.4, respectively. If you were to liquidate your position, your profits would be

A. $125 loss.
B. $125 profit.
C. $1,060.50 loss.
D. $1,062.50 profit.
E. none of the above.

How to get the bond price and future prices?

Reference no: EM131772189

Questions Cloud

Assignment-managing change analysis of a hypothetical case : Develop a Communication Management Plan that should be used by Mercer Medical Center to effectively manage and lead the proposed change management programme
What transactions or event create changes in the investment : What transactions or event create changes in the Investment in Watts Corporation account being recorded by Smith
How much amount should give to the nephew : Suppose that you gave your niece a check for $50 on her 16th birthday in 1997 (when the CPI was 160.5). Your nephew is now about to turn 16.
Prepare general journal entries to reord the march sales : A company that uses perpetual inventory system made the following cash purchases and sales: Prepare general journal entries to reord the March 16 sales
Listed spot and futures prices of a treasury : On January 1, the listed spot and futures prices of a Treasury bond were 95.4 and 95.6. You sold $100,000 par value Treasury bonds and purchased
What will be the initial payment : The money used to purchase the annuity will earn 4.8% compounded monthly. If payments grow by 2.4% compounded monthly
Examining the percent of teens in the surve : Read News Story 13 in the Appendix and on the CD, "3 factors key for drug use in kids." Identify or calculate a numerical value for each of the following.
Describe three major concepts : Describe three major concepts you learned in this course and explain how you will utilize them in your current or a future position.
Calculate t : At time t = 0, $ 1 is deposited in each fund. The positive time, in years, that the two funds are equal is denoted by T. Calculate T.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd