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 %
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You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures...
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?
Req A Req B and C Assume that the Treasury bond futures price falls to 91.40 percent and rises to 92.90, what is your loss or gain? (Input the amounts as a positive value.) C. Suppose you purchase a Treasury bond futures contract at a price of 92 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 91.40 percent. What is your...
The initial margin requirement of an interest rate futures contract is 12% with a price of $149,841. The futures is worth $125,000 per contract. The percentage profit/loss of the investor with a short position of this futures will be _________ if the futures price becomes $145,000. Multiple Choice A.37.92% loss B. 37.92% profit C. 26.92% profit D. 26.92% loss
Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of 120 - 100. Dudley Savings thinks interest rates will go down over the period of investment. The face value of the bond underlying the futures contract is $100,000. a. Should the bank go long or short on the futures contracts? b. Given your answer to part (a), calculate the net profit to Dudley Savings Bank if the price of the futures...
The initial margin (performance bond) for each wheat futures contract is $1,650. assume you went long one wheat futures contract at the above price and posted margin with your broker, if the next day wheat futures closed at “470” how much money would be left in your margin account?
Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of 109 – 100. Dudley Savings thinks interest rates will go down over the period of investment. The face value of the bond underlying the futures contract is $100,000. a. Should the bank go long or short on the futures contracts? b. Given your answer to part (a), calculate the net profit to Dudley Savings Bank if the price of the futures...
Cobb Company sold one Treasury Bond futures contract (one) when the specified price was 93-25. When the position was closed out, the price of the Treasury Bond futures contract was 95-12. What was Cobb’s profit or loss from this contract (ignoring transaction costs)?
On September 10, 2009, U.S. Treasury Bonds futures for Dec 2009 delivery was traded at 116-20 at CBOT. On September 13, the futures was traded at 114-29. You opened your position by taking 10 long positions on the T-bond futures on Sept 10. As of Sept 10, the initial margin is $4,995 per contract and the maintenance margin is $3,700. i) Calculate your gains (losses) on your position as of September 13. ii) What is the highest price at which...
Assume that futures contracts have zero initial margins and no daily margin calls. That is, you pay nothing or get nothing when you enter a position in the futures contracts. You pay the entire futures price when you accept delivery of the underlying asset. You get the entire futures price when you make delivery of the underlying asset. Lastly, you pay your entire loss or get your entire profit on your futures position when you close the position with an...