What Is the Profit on a Hedge If Bonds Are

question 35

Multiple Choice

What is the profit on a hedge if bonds are purchased at $150,000,two futures contracts are sold at $72,500 each,then the bonds are sold at $147,500 and the futures are repurchased at $74,000 each?

• A)-$2,500
• B)-$5,500
• C)-$500
• D)-$3,000
• E)none of the above

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