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:

Body Temperature

The measure of the body's ability to generate and get rid of heat, critical for maintaining metabolic processes in living organisms.

Contraction

The process of muscle fibers shortening, leading to movement or changes in the shape of organs.

Metabolic Rate

The rate at which the body uses energy for essential processes like breathing, circulating blood, and cellular repair.

Evaporation

The process in which liquid water turns into vapor, typically influenced by heat.