USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 120

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A futures contract on Treasury bond futures with a December expiration date currently trade at 103:06. The face value of a Treasury bond futures contract is $100,000. Your broker requires an initial margin of 10 percent.
-Refer to Exhibit 15.8. Calculate the current value of one contract.

• A) $100,000
• B) $103,600.5
• C) $103,187.5
• D) $102,306.3
• E) $104,293.5

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Definitions:

Truth-in-Lending Act

A national regulation aiming to encourage knowledgeable utilization of consumer credit through mandatory disclosures regarding its conditions and expenses.

Natural Person

A human being, as opposed to a legal entity such as a corporation, recognized as a legal subject with rights and obligations.

Real Estate Transactions

Legal agreements involving the transfer of ownership or rights in real property from one party to another.

HUD

The United States Department of Housing and Urban Development, a federal agency responsible for national policies and programs addressing America's housing needs.