Conyers Bank Holds U

question 67

Multiple Choice

Conyers Bank holds U.S.Treasury bonds with a book value of $30 million.However,the U.S.Treasury bonds currently are worth $28,387,500.

Assume that the portfolio manager sells the bonds at a price of 87-05/32,and that she closes out the futures hedge position at a price of 81-17/32.What will be the net gain or loss on the entire bond transaction from the time that the hedge was placed?

• A)Gain of $2,583,125.
• B)Loss of $93,750.
• C)Loss of $2,583,125.
• D)Gain of $93,750.

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Definitions:

Collective Bargaining

The process in which working people, through their unions, negotiate contracts with their employers to determine their terms of employment.

Disparate Treatment

A form of discrimination where individuals are treated differently based on prohibited factors such as race, gender, age, etc., in similar situations.

Discriminatory Conduct

Actions or behaviors that unjustly differentiate among individuals, often based on race, age, sex, or religion.

Civil Rights Act

A landmark piece of U.S. legislation, particularly the Act of 1964, which outlawed discrimination based on race, color, religion, sex, or national origin.