Exhibit 21 $$\begin{array}{l}\begin{array} { c c } &\text { T-Bill } & \text { Eurodollar } \\\hline \text { September }& 93.25 & 92.35\end{array}\end{array}$$

question 12

Multiple Choice

Exhibit 21.6
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Assume that you observe the following prices in the T-Bill and Eurodollar futures markets $$\begin{array}{l}\begin{array} { c c } &\text { T-Bill } & \text { Eurodollar } \\\hline \text { September }& 93.25 & 92.35\end{array}\end{array}$$
-Refer to Exhibit 21.6. Assume that a month later the price of the September T-Bill future is 93 and the price of the Eurodollar future is 90.25. Calculate the profit on the Eurodollar futures position.

• A)190 basis points.
• B)210 basis points.
• C)-190 basis points.
• D)-210 basis points.
• E)100 basis points.

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Definitions:

Price

The amount of money required to purchase a good, service, or asset.

Coupon

Represents the interest payment that a bond issuer owes to the bondholders, typically expressed as an annual percentage of the bond's face value.

Bond B

Refers to a specific class or series of bond, which may be characterized by its rank, terms, issuing entity, or other defining features.

Coupon Bond

A debt security that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.