the economics of money, banking, and financial markets

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13. 
    

    If you sell 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: A
    Diff: 2 Type: MC Page Ref: 326
    Skill: Applied
    Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

    
    


14. 
    

    If you sell 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: A
    Diff: 2 Type: MC Page Ref: 326
    Skill: Applied
    Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

    
    


15. 
    

    If you sell 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: A
    Diff: 2 Type: MC Page Ref: 326
    Skill: Applied
    Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

    
    


16. 
    

    By selling short a futures contract of $100,000 at a price of 115, you are agreeing to deliver
    ____.
    A) $100,000 face value securities for $115,000
    B) $115,000 face value securities for $110,000
    C) $100,000 face value securities for $100,000
    D) $115,000 face value securities for $115,000
    Answer: A
    Diff: 1 Type: MC Page Ref: 326
    Skill: Applied
    Objective List: 14.1 Distinguish among forwards, futures, options, and swaps