The following trade quotes are for futures contracts on U.S. Treasury bonds. Ope
ID: 2723181 • Letter: T
Question
The following trade quotes are for futures contracts on U.S. Treasury bonds.
Open
High
Low
Settle
Sep
98-15
99-01
98-07
98-22
Dec
98-10
98-31
98-07
98-20
Mar
98-29
98-29
98-08
98-19
Calculate your mark-to-market gain or loss - at the end of the trading day - if you BOUHGT the December T-bond futures at the OPEN. Again, assume 10 contracts.
Gain of $3,125
Gain of $98,312.50
Loss of $98,625.50
Loss of $312.50
Open
High
Low
Settle
Sep
98-15
99-01
98-07
98-22
Dec
98-10
98-31
98-07
98-20
Mar
98-29
98-29
98-08
98-19
Explanation / Answer
Total Mark to market gain= (Settlement price – open price) x no. of contracts
= (100,000 x (98+20/32)% - 100,000 x (98+10/32)% ) x10
= (98625- 98312.50) x 10
= 3125 gain
Option A is correct
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