If You Sell in March a Bond Future Contract for 97

question 44

Multiple Choice

If you sell in March a bond future contract for 97 that matures on June 30 of the same year, and at the maturity date the same future sells for 93, you have a ________ of $________.

• A) loss; 4000
• B) loss; 4
• C) profit; 4000
• D) profit; 4

---

Definitions:

Instrument

A written legal document that defines rights, duties, entitlements, or liabilities, such as a contract, will, promissory note, or share certificate.

Regular Course

Activities or operations that are conducted in the normal and usual manner of conducting business.

Good Faith

The sincere intention to be fair, open, and honest, devoid of any intention to defraud or seek an unfair advantage.

Negotiable Instrument

A documented pledge to pay a specified amount of money, either upon request or at a scheduled time, with the name of the person making the payment included in the document.