The buyer of the interest rate futures contract

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A March 2015 futures contract is priced at 115 points for a US$100,000 a US 2033 Treasury bond.The expected bond price on the delivery date is US110,000.What is the expected futures contract price on this date?

What happens to the profit of the seller and the buyer of the interest rate futures contract if the bond price turns out to be US$118,000 on the delivery date?

What is the result in (c) above if the buyers and sellers had instead bought futures options at a premium of $1000?

Reference no: EM131841847

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