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Purchase a treasury bond futures contract

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Reference no: EM132614023

Suppose you purchase a Treasury Bond futures contract at a price of 95 percent of face value, $100,000.

  • What is your obligation when you purchase this futures contract?
  • Assume that the Treasury bond future price falls to 94 percent, what is your loss or gain?
  • Assume that the Treasury bond future price rise to 97 percent, what is your loss or gain?

Reference no: EM132614023

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