Question

Suppose you purchase a Treasury bond futures contract at a price of 90 percent of the face value, $100,000. a. What is your obligation when you purchase this futures contract? b. Assume that the Treasury bond futures price falls to 88.10 percent. What is your loss or gain? c. Assume that the Treasury bond futures price rises to 91.90. What is your loss or gain?

What is your obligation when you purchase this futures contract?

	You are obligated to purchase a bond worth at contract maturity.

Assume that the Treasury bond futures price falls to 88.10 percent and rises to 91.90. What is your loss or gain? (Input the amounts as a positive value.)

	b. c.

Answer 1

l 90% of the value $1,00,000 Contract is 890,000 O A future Contract gives the buyen the obligation at the end of expiration date if you didn't before it exprice to buy the assest clove your position 6) Treasure bond falls to 88. 10.1 Look on the future contract is I 10,900 10,170 If the future Contract rises to 91.90 hain is 880,10. 1) what is your obligation when you purchase this future contract? If you hold the future contract fill the expiration. You have to buy the asset from the seller at the end of expiration date.