You purchase a Treasury-bond futures contract with an initial margin requirement

Question

You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $114,050. The contract is traded on a $100,000 underlying par value bond. If the futures price falls to $106,200, what will be the percentage loss on your position? (Input the value as positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) A single stock futures contract on a nondividend-paying stock with current price $125 has a maturity of one year. If the T-bill rate is 4.2%, what should the futures price be? (Round your answer to 2 decimal places.) What should the futures price be if the T-bill rate is still 4.2% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) What if the interest rate is 5.4% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Explanation / Answer

Ans 9(a) Future Price= 125+4.2% $130.00 Ans9(b) Future Price= 125(1+.042)^3 $141.42 Ans9©= 125(1+.054)^3 $146.36

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