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Exhibit 20.2
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A futures contract on Treasury bond futures with a December expiration date currently trade at 103:06. The face value of a Treasury bond futures contract is $100,000. Your broker requires an initial margin of 10%.
-Refer to Exhibit 20.2. If the futures contract is quoted at 105:08 at expiration calculate the percentage return.
Marginal Revenue
The extra revenue generated by the sale of an additional unit of a product or service.
Marginal Cost
The cost of producing one additional unit of a good or service.
Marginal Cost
The expense associated with creating an extra unit of a product or service.
Output
The quantity of goods or services produced in a given time period by a firm, industry, or country.
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