What is your obligation when you purchase this contract

Reference no: EM132018033

Suppose you purchase a Treasury bond futures contract at a price of 92 percent of the face value, $100,000.

a. What is your obligation when you purchase this futures contract? You are obligated to purchase a bond worth $ at contract maturity.

b. Assume that the Treasury bond futures price falls to 91.4 percent. What is your loss or gain? (Input the amount as a positive value.)

c. Assume that the Treasury bond futures price rises to 92.9. What is your loss or gain? (Input the amount as a positive value.)

Reference no: EM132018033

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