Conyers Bank Holds U

question 2

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.

If T-bond futures prices decrease to 81-27/32^nds,what is the value of the futures hedge position?

• A)$81,270,000.
• B)$24,553,125.
• C)$26,700,000.
• D)$812,700.

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Definitions:

Short-Run Profits

Earnings achieved in a short period of time, often prioritized at the expense of long-term sustainability or investment.

Shareholder Wealth

The total value of an investment in a company held by its shareholders, often measured by stock price optimization and dividend payouts.

Property Rights

Legal rights that delineate the ownership and use of property, including intellectual and physical property.

Cooperate with Management

The act of employees working together with their employers or managers in a collaborative and constructive manner to achieve common goals.