Problem:
Assume that a futures contract on Treasury bonds with a face value of $100,000 is purchased at 93 00.
Required:
Question: If the same contract is later sold at 94 18, what is the gain, ignoring transactions costs?
A) $1,180,000
B) $118
C) $11,800
D) $1,562.50
Note: Show supporting computations in good form.