Difference between the selling and purchase price


Problem:

Assume that a T bill futures contract with a face value of $1 million is purchased at a price of $95 per $100 face value. At settle¬ment, the price of T bills is $95.50.

Required:

Question: What is the difference between the selling and purchase price of the futures contract?

A) $.50

B) $50

C) $500

D) $5,000

Note: Please show guided help with steps and answer.

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Accounting Basics: Difference between the selling and purchase price
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