Calculate the Dollar Price Implicit in a Bank-Accepted Bill Futures

question 9

Multiple Choice

Calculate the dollar price implicit in a bank-accepted bill futures contract with a face value of $1 000 000,a reported price of $95.00 (the price of the trade) ,and 90 days to maturity.

• A)$998 252
• B)$952 381
• C)$960 242
• D)$987 821

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Definitions:

Mutually Exclusive

Situations, events, or decisions that cannot occur or be undertaken simultaneously—if one happens, the other cannot.

Projects

Initiatives or plans undertaken to achieve specific objectives, which can be either short-term or long-term in nature.

Payback Period

The time required for the return on an investment to "pay back" the sum of the original investment, often used for capital budgeting.

Investment

Disbursing assets, particularly money, with the objective of obtaining income or profit.