What is your obligation when you purchase futures contract


Question: Suppose you purchase a Treasury bond futures contract at a price of 95 percent of the face value, $100,000.

1) What is your obligation when you purchase this futures contract?

2) Assume that the Treasury bond futures price falls to 94 percent. What is your loss or gain?

3) Assume that the Treasury bond futures price rises to 97. What is your loss or gain?

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Finance Basics: What is your obligation when you purchase futures contract
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