Suppose a CBOT 10-Year U

Suppose a CBOT 10-year U.S.Treasury note futures contract has a quoted price of 88-30.If annual interest rates go down by 1.00 percentage point,what is the gain or loss on the futures contract? (Assume a $1,000 par value,round the new interest rate to 4 decimal places when written as a decimal,and round the change in price up to the nearest whole dollar.)

A) $63.00
B) $65.00
C) $67.00
D) $69.00
E) $71.00

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free