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

question 81

Multiple Choice

On January 1, the listed spot and futures prices of a Treasury bond were 93.8 and 93.13. You purchased $100,000 par value Treasury bonds and sold one Treasury bond futures contract. One month later, the listed spot price and futures prices were 94 and 94.09, respectively. If you were to liquidate your position, your profits would be a

• A) $125 loss.
• B) $125 profit.
• C) $12.50 loss.
• D) $1,250 loss.
• E) None of the options are correct.

---

Definitions:

Due Diligence Reports

Comprehensive reviews and analyses conducted to assess the performance, legal standings, or risk factors associated with a business or investment.

Feasibility Reports

Documents that evaluate the practicality of a proposed project or system, considering factors like cost, technology, and time.

Compliance Reports

Documents or records that verify adherence to rules, regulations, or standards.

Statement of Purpose

A written document often required for academic or professional applications, detailing an individual's objectives and motivations.