What Is the Price Difference on a $100,000, 5-Year Treasury

question 51

Multiple Choice

What is the price difference on a $100,000, 5-year Treasury note futures contract between the high and low prices? Treasury note, $100,000, pts and one-quarter of 1/32 of a point.
$$\begin{array} { c l l l l l } \text { Contract } & \text { Oper } & \text { High } & \text { Low } & \text { Clage } \\\text { Jun, } 5 \text { Yr. Treasury note } & 112^{\prime} 067 & 112 ^{\prime}126 & 111 ^{\prime}175 & 111 ^{\prime} 250\end{array}$$

• A)$428.13
• B)$512.08
• C)$787.50
• D)$823.42
• E)$846.88

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Definitions:

Marginal Benefit

The additional satisfaction or value obtained from acquiring one more unit of a product or service.

Expected Total Return

The sum of all anticipated earnings from an investment, including capital gains, interest, and dividends, over a specified period, reflecting its potential profitability.

Optimal R&D

The most efficient level of investment in research and development activities where marginal cost equals marginal benefit.

Expected Rate Of Return

The increase in profit a firm anticipates it will obtain by purchasing capital or engaging in research and development (R&D); expressed as a percentage of the total cost of the investment (or R&D) activity.