In April, you sell 3 futures contracts on 30-year Treasury bonds for $100,000 of par value of the bonds each at the futu...
In April, you sell 3 futures contracts on 30-year Treasury bonds for $100,000 of par value of the bonds each at the futures price of 118-187. In June, you close out your position at 117-252. What is your dollar gain or loss, to the nearest cent? (If a loss, precede the value with a negative sign.)
Homework Answers
Profit = [Futures Price - Spot Price at expiration] * Par Value * No. of Futures Contracts
= [118.187% - 117.252%] * $100,000 * 3 = $2,805
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