Explain why there is an active market in options on US Treasury Bond futures but not in options on US Treasury bonds.
Explain why there is an active market in options on US Treasury Bond futures but not...
2. US Treasury bill, US Treasury note, US Treasury bond] Discuss the differences among the three instruments, focusing on the maturity and coupon issuance. (You may refer to any materials including online articles related to the instruments. It may be helpful to make a table to compare them like below: Maturity Frequency of coupon payment Coupon (yes/no) Common US products (in maturity terms) Treasury bills Treasury notes Treasury bonds
1. Explain in a few sentences (100 words or less) why the US Treasury market is important generally and specifically to the global financial markets. 2.Explain in a few sentences (100 words or less) if you believe the purpose of a corporation should be to enhance shareholder wealth only. 3.Explain in a few sentences (100 words or less) the main differences between the 'primary' and 'secondary' financial markets. Mention though which market a company would actually receive cash and give...
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...
Suppose you purchase a Treasury bond futures contract at a price of 95 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 94 percent. What is your loss or gain? c. Assume that the Treasury bond futures price rises to 97. What is your loss or gain?
You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $115,850. The contract is traded on a $100,000 underlying par value bond. If the futures price falls to $108,600, what will be the percentage loss on your position? (Input the value as positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) Total percentage loss %
can you please explain in detail Treasury bond yields (interest rates) have plummeted. Explain why and illustrate graphically with a bond market graph.
Suppose that the Treasury bond futures price is 101-12. Which of the following four bonds is cheapest to deliver? Please answer with just a number (1, 2, 3, or 4) Bond Price Conversion Factor 1 127-05 1.2131 2 132-15 1.2992 3 118-31 1.1149 4 148-02 1.4026
What is the meaning of a Treasury bond futures price quote of 103-13?
Problem 26-9 Futures prices Calculate the value of a six-month futures contract on a Treasury bond. You have the following information: Six-month interest rate: 11% per year, or 5.40% for six months. Spot price of bond: 91.00. The bond pays a 9% coupon, 4.50% every six months.
SPAN was developed in 1988 to compute risk margin for portfolios of futures and futures options. SPAN is still in use today. Explain how SPAN produces risk margin for futures and futures options portfolios.