On January 1, the Listed Spot and Futures Prices of a Treasury

question 22

Multiple Choice

On January 1, the listed spot and futures prices of a Treasury bond were 95.4 and 95.6.You sold $100,000 par value Treasury bonds and purchased one Treasury bond futures contract.One month later, the listed spot price and futures prices were 95 and 94.4, respectively.If you were to liquidate your position, your profits would be

• A)$125 loss.
• B)$125 profit.
• C)$1,060.50 loss.
• D)$1,062.50 profit.
• E)None of the options

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Definitions:

Negative Words

Terms that convey a negative connotation, often used to express criticism, pessimism, or absence.

Maintain Accuracy

The act of ensuring information remains correct, precise, and free from errors.

Audience-based Benefit

an advantage or positive outcome that specifically appeals to or is targeted towards a particular group or audience.

Project Delay

A situation where a project extends beyond its planned schedule due to various factors such as resource constraints, scope changes, or unforeseen challenges.