the economics of money, banking, and financial markets

400 $

© 2014 Pearson Canada Inc.$

5. 
   

   If you buy in February a bond future contract for 125 that matures on June 30 of the same
   year, and at the maturity date the same future sells for 105, you have a ____ of $____.
   A) loss; 20000
   B) loss; 20
   C) profit; 20000
   D) profit; 20
   Answer: A
   Diff: 2 Type: MC Page Ref: 326
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

   
   


6. 
   

   If you buy in March a bond future contract for 125 that matures on June 30 of the same year,
   and at the maturity date the same future sells for 135, you have a ____ of $____.
   A) loss; 10000
   B) loss; 10
   C) profit; 10000
   D) profit; 10
   Answer: C
   Diff: 2 Type: MC Page Ref: 326
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

   
   


7. 
   

   If you buy in March a bond future contract for 110 that matures on June 30 of the same year,
   and at the maturity date the same future sells for 125, you have a ____ of $____.
   A) loss; 15000
   B) loss; 15
   C) profit; 15000
   D) profit; 15
   Answer: C
   Diff: 2 Type: MC Page Ref: 326
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

   
   


8. 
   

   If you buy in March a bond future contract for 150 that matures on June 30 of the same year,
   and on the maturity date the same future sells for 170, you have a ____ of $____.
   A) loss; 20000
   B) loss; 20
   C) profit; 20000
   D) profit; 20
   Answer: C
   Diff: 2 Type: MC Page Ref: 326
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps