Assume That a T-Bill Futures Contract with a Face Value

question 49

Multiple Choice

Assume that a T-bill futures contract with a face value of $1 million is purchased at a price of $95.00 per $100 face value. At settlement, the price of T-bills is $95.50. What is the difference between the selling and purchase price of the futures contract?

• A)$.50
• B)$50
• C)$500
• D)$5,000
• E)None of these are correct.

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