Problemassume that a futures contract on treasury bonds, Ask an Expert

Accounting

Problem:

Assume that a futures contract on Treasury bonds with a face value of $100,000 is purchased at 93 00.

Required:

Question: If the same contract is later sold at 94 18, what is the gain, ignoring transactions costs?

A) $1,180,000

B) $118

C) $11,800

D) $1,562.50

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91168134

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