ZuoTi.Pro
Question

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 orSuppose you purchase a Treasury bond futures contract at a price of 92 percent of the face value, $100,000. a. What is your o

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 loss or gain? c. Assume that the Treasury bond futures price rises to 92.90. What is your loss or gain? Complete this question by entering your answers in the tabs below. Req AReq B and C What is your obligation when you purchase this futures contract? You are obligated to purchase a bond worth at contract maturity Req A Req B andC
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASEHome ert Page Layout Formulas Data Review V 義Cut aCopy Format Painter Add-Ins Σ AutoSum , Fill Sort &Find & ClearFilter Selec

0 0
Add a comment
Know the answer?
Add Answer to:
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...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose you purchase a Treasury bond futures contract at a price of 90 percent of the...

    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...

    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...

    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             %

  • 5. Suppose in May you purchase $100,000 face value of U.S. Treasury bonds for a price...

    5. Suppose in May you purchase $100,000 face value of U.S. Treasury bonds for a price of $90,000. Suppose that the bond matures in 15 years but that you must sell them at the end of July (10 points). In the top row in the table below, report the gains or loss that you would incur for selling the a. bonds for each of the listed potential end-of-July selling prices for the bonds. b. In the middle row in the...

  • You sold one vibranium futures contract at $2.29 per microgram. What would your profit (loss) be...

    You sold one vibranium futures contract at $2.29 per microgram. What would your profit (loss) be at maturity if the vibranium spot price at that time were $2.10 per microgram? Assume the contract size is 5,000 micrograms and there are no transactions costs. A. $950.00 gain B. $950.00 loss C. $300.00 gain D. $300.00 loss

  • 1. (10 Points) You purchase a 15-year U.S. Treasury bond (maturity amount of $1,000) which has...

    1. (10 Points) You purchase a 15-year U.S. Treasury bond (maturity amount of $1,000) which has an 8-percent coupon payment. You pay a price of $1,090.80 for the bond; at the time you purchase the bond you are told that the bond has a yield-to-maturity (implied interest rate) of 7 percent. (a) Using the interest-rate tables, verify that the bond has a 7-percent yield-to-maturity using the present-value tables. Show your calculations and carefully explain your reasoning. Also, explain why the...

  • You hedged your bank’s exposure to declining interest rates by buying one June Treasury bond futures...

    You hedged your bank’s exposure to declining interest rates by buying one June Treasury bond futures contract at the opening price on April 10, 2008 (see exhibit 8-2), which was quoted at 119-075. It is now Tuesday, June 10, and you discover that on Monday, June 9, June T-bond futures opened at 115-165 and settled at 114-300. (1) What is the profit or loss on your long position as of settlement on June? (2) If you deposited the required initial...

  • 18. You sell one December gold futures contract when the futures price is $1,010 per ounce....

    18. You sell one December gold futures contract when the futures price is $1,010 per ounce. The contract is on 100 ounces of gold and the initial margin per contract that you provide is $2,000. The maintenance margin per contract is $1,500. During the next day the futures price rises to $1,012 per ounce. What is the balance of your margin account at the end of the day? A. $1,700 B. $2,200 C. $1,300 D. $1,800 19. A hedger takes...

  • Assume that futures contracts have zero initial margins and no daily margin calls. That is, you...

    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...

  • Assuming today is 3/20/20, your firm wants to purchase a $10,000 par value U.S. Treasury bond...

    Assuming today is 3/20/20, your firm wants to purchase a $10,000 par value U.S. Treasury bond with 30 years to maturity, annual coupon rate of 2.00% with semiannual coupon payments. The market annual yield to maturity on 30-year "T" bonds, found in the US Treasury Yield curve, is 1.55%. http:/www.treasur es ab curte interest rates/Page Test Virw. danield Dab 1 mo 2 momomo 1 yr yr y syy 320/2020 0.04 0.05 0.05 0.05 0.15 0.37 0.41 0.52 0.82 0.92 1.35...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT