Percentage loss on position


Problem:

You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $115,850. The contract is traded on a $100,000 underlying par value bond.

Required:

Question: If the futures price falls to $108,600, what will be the percentage loss on your position?

Note: Please explain comprehensively and give step by step solution.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Percentage loss on position
Reference No:- TGS0891153

Expected delivery within 24 Hours