Assume That a Futures Contract on Treasury Bonds with a Face

question 67

Multiple Choice

Assume that a futures contract on Treasury bonds with a face value of $100,000 is purchased at 93-00. If the same contract is later sold at 94-18, what is the gain, ignoring transactions costs?

• A)$1,180,000
• B)$118
• C)$11,800
• D)$15,625
• E)$1,562.50

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Definitions:

Hallucinations

Perceptual experiences that occur without an external stimulus, often seen in psychiatric conditions like schizophrenia.

Socially Isolated

Refers to individuals who are not in regular contact with others or are not actively participating in social groups or activities.

Hearing Voices

The experience of hearing sounds, particularly voices, when no external sound is present, often associated with certain mental health conditions.

Schizophrenic

Relating to schizophrenia, a mental disorder characterized by abnormal behavior, strange speech, and a decreased ability to understand reality.