Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you believe that interest rates are going to fall

You believe that interest rates are going to fall over the coming months, which would...

60.1K

Verified Solution

Question

Accounting

You believe that interest rates are going to fall over the coming months, which would lead to an increase in bond prices. You decide to speculate using treasury futures. You enter into 20 LONG futures contracts when the futures price is quoted as 135 23/32.

You close out your position a few weeks later when the futures price is 137 16/32.

What is your gain/loss on your trade?

Remember that the contract size for each treasury future contract is for $100,000 of face value of bonds.

(Enter gains as positive numbers and losses as negative numbers. Required precision: 0.01 +/- 0.01).

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A poll of 1021 U.S. adults split the sample into four age​ groups: ages​ 18-29, 30-49,​...

Statistics
Q

A real estate agent has 12 properties that she shows. She feels that there is a...

Statistics
Q

What are some components of American society and culture that make poverty less visible.

Psychology
Q

Sketch the graph of an example of a function that satisfies all of the given...

Calculus
Q

Find the missing variable for each direct variation k 3 9 y

Algebra
Q

Hawk Hornes, Incorporated makes one type of birchouse that it sells for $2970 each. its...

Accounting
Q

93. How does ethical behavior contribute to the credibility and reliability of financial reporting?

Accounting
Q

Calculate The first year of depreciation on a residential building costing $250,000, purchased June 2,...

Accounting
Q

Carga de viento de servicio no factorizado = 100 kips en tensin Todo el...

Accounting
Q

Required information [The following information applies to the questions displayed below] Harbortown Marine Products (HMP)...

Accounting
Q

Please show all calculations or explanations if any. 18. Advia reported the following amounts...

Accounting
Q

Problem 1 Treasured Trinkets Company has the following information: Required: 1. Calculate the flexible budget....

Accounting