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:

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressed as a percentage.

Total Taxes

The comprehensive amount of taxes paid by an individual or entity, encompassing federal, state, and local taxes.

Individual Income Tax

A tax levied on the income of individuals or households by the government.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to taxation.