question archive The company expects to invest approximately $1 million in three months in corporate bonds
The company expects to invest approximately $1 million in three months in corporate bonds
Subject:FinancePrice: Bought3
The company expects to invest approximately $1 million in three months in corporate bonds. The current rate of interest is 4.40%. To hedge the position, the company wishes to use 3 year Treasury bond futures contracts trading at 97.000. Calculate the profit or loss from the position in futures market if in 3 months the contracts are trading at 91.000. Select one: a. $-15851.14 b. $-162825.89 c. $215081.47 O d. $158511.38 x Oe. $-1585113.77
