Suppose you purchase a call contract on a t-bond with an, Ask an Expert

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Suppose you purchase a call contract on a T-bond with an exercise price of 102 16/32 . The bond represents $100,000 of bond principal, and has a premium of $1,000.

a) If the actual T-bond price falls to 100, what is the gain/loss per contract on the position?

b) If the actual T-bond price rises to 103, what is the gain/loss per contract on the position?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92078975

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