Would you have bought or sold these futures contracts

Assignment Help Finance Basics

Reference no: EM131305274

Consider the following listing for 10-year Treasury note futures on the Chicago Board of Trade. One futures contract for Treasury notes = $100,000 face value of 10-year 6% notes.

103_Table 1.jpg

a. If on this day you bought two contracts expiring in December 2012, how much would you have paid?

b. What is meant by the "OpenInt" on a futures contract? What was the OpenInt on the contract expiring in March 2013?

c. If you were a speculator who expected interest rates to fall, would you have bought or sold these futures contracts? Briefly explain.

d. Suppose you sell the December futures contract, and one day later the Chicago Board of Trade informs you that it has credited funds to your margin account. What happened to interest rates during that day? Briefly explain.

Reference no: EM131305274

Questions Cloud

How much you spend in buying or selling futures contracts : If each wheat futures contract is for 5,000 bushels, how many contracts will you buy or sell, and how much will you spend or receive in buying or selling futures contracts?

What does article mean by open interest on major exchange : What does the article mean by "open interest on major exchanges"? Why would this be a measure of the size of a market in a commodity?

Define or describe the third-variable problem : In addition to the key words, you should also be able to define the following terms: third-variable problem directionality problem confounding variable random process placebo mundane realism experimental realism

Described the situation of a feedlot owner : Described the situation of a feedlot owner who "uses derivatives to hedge the price he pays for feed and the price he gets for steers."

Would you have bought or sold these futures contracts : If you were a speculator who expected interest rates to fall, would you have bought or sold these futures contracts? Briefly explain.

Identify the independent variable and the dependent variable : Explain why Dr. Jones can be reasonably confident that the participants' age is not a confounding variable. That is, explain why it is unlikely that one group does better on the memory task because they are substantially older than the other group..

Why is a prospectus necessary in doctoral level work : Why is a prospectus necessary in doctoral level work.Piaget found dramatic differences in development between preschoolers and elementary-age children. Discuss several of these differences from cognitive, physical, and psychosocial perspectives.

Implement a rule crypto that solves cryptarithmetic problem : Programming Languages Assignment. Implement a rule "crypto" that solves the following cryptarithmetic multiplication problem: TOCK * TOCK = GRIPTOCK

Discuss about the adhd characteristic traits : Discuss about the ADHD Characteristic Traits,Environmental and Biological Influences,Attention Deficit Disorders With or Without Hyperactivity (ADHD) etc.

User Account

All Pages