Suppose a hypothetical CBOT 7-year U.S., semiannual payment, 6% coupon Treasury note futures contract has a quoted price of 88-300. 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.) Do not round other intermediate calculations. ?
A. $38
B. $55
C. $51
D. $56
E. $45
Answer: C
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Easton Company makes and sells scooters. Easton incurred the following costs in its most recent fiscal year: Cost Items Appearing on the Income StatementMaterials cost ($10 per unit)Depreciation on manufacturing equipmentCompany president's salarySalaries of administrative personnelLabor cost ($4 per unit)Research and development costsAdvertising costs (150,000 per year)Real estate taxes on factoryShipping and handling ($0.15 per unit)Inspection costsEaston can currently purchase the scooters it makes from Weston Company. If the company purchases the scooters, Easton would still continue to use its own logo, sales staff, and advertising programs. If Easton outsources the scooters to Weston, which of the following costs would be relevant to the outsourcing decision?
A. Shipping and handling B. Materials cost C. Inspection costs D. All of the above.
When Canon Cameras was losing market share in the United States to Minolta, Canon decided that its distributor, Bell & Howell, was not giving adequate support. Canon sent Tatehiro Tsuruta to the United States to look into the problem
On entering a camera store, he would act just like a customer. He would note how the cameras were displayed and how the clerks served customers. Canon utilized ________, ________ observation in a ________ setting. A) unstructured; disguised; contrived B) unstructured; disguised; natural C) structured; undisguised; natural D) structured; undisguised; contrived
In applying the treasury stock method of computing diluted earnings per share, when is it appropriate to use the average market price of common stock during the year as the assumed repurchase price?
a. Always b. Never c. When the average market price is lower than the exercise price d. When the average market price is higher than the exercise price
Owner's withdrawals
A) increase expenses B) decrease expenses C) increase cash D) decrease owner's equity