If You Buy in February a Bond Future Contract for 125

question 20

Multiple Choice

If you buy in February a bond future contract for 125 that matures on June 30 of the same year, and at the maturity date the same future sells for 105, you have a ________ of $________.

• A) loss; 20000
• B) loss; 20
• C) profit; 20000
• D) profit; 20

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Definitions:

Contract Implied

A legal agreement created by the actions, behavior, or circumstances of the parties involved, rather than by their written or spoken words.

Mutual Intent

The shared understanding and agreement between parties involved in a contract or negotiation.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party if the latter has reasonably relied on that promise to their detriment.

Traditional Contract

A legally binding agreement following established legal formats and norms, typically involving a written document.