Assume That a T-Bill Futures Contract with a Face Value

question 34

Multiple Choice

Assume that a T-bill futures contract with a face value of $1 million is purchased at a price of $95.00 per $100 face value. At settlement, the price of T-bills is $95.50. What is the differencebetween the selling and purchase price of the futures contract?

• A) $.50
• B) $50
• C) $500
• D) $5,000
• E) none of the above