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Profit or loss from the position in futures market

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Reference no: EM132579622

The company expects to invest approximately $1 million in three months in corporate bonds. The current rate of interest is 1.20%. To hedge the position, the company wishes to use 3 year Treasury bond futures contracts trading at 92.500. Calculate the profit or loss from the position in futures market if in 3 months the contracts are trading at 98.400.

Select one:

a. $168019.49
b. $1548087.15
c. $-154808.72
d. $15480.87
e. $-24240.96

Reference no: EM132579622

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