Suppose a Hypothetical CBOT 13-Year U

question 27

Multiple Choice

Suppose a hypothetical CBOT 13-year U.S. ,semiannual payment,6% coupon Treasury note futures contract has a quoted price of 103-180.If annual interest rates go up by 1.00 percentage point,what is the gain or loss on the futures contract? (Assume a $1,000 par value,round the new interest rate to 4 decimal places when written as a decimal,and round the change in price up to the nearest whole dollar. ) Do not round other intermediate calculations.
?

• A) ?$111
• B) ?$94
• C) ?$85
• D) ?$71
• E) ?$89

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Definitions:

Size Constancy

The perceptual process by which we perceive an object as being the same size despite changes in the distance from which it is viewed.

Monocular Cues

Visual information that allows perception of depth and spatial relationships using only one eye.

Interposition

A visual cue in which one object partly covering another is perceived as being closer.

Distance

The amount of space between two points, which can be measured in various units and can also refer to an emotional separation between people.