Angela buys a Treasury bond futures agreement for $94,000. On the delivery date, the spot price is $95,000. Does she win or lose? By how much?
Debt security that the concerned government of the country dispenses to overcome the financial shortage is termed treasury bonds. Investors can acquire treasury bonds from the stock market, and so they are liquid in nature.
Answer and Explanation: 1
Angela has won by entering into a future agreement for $94,000 as on the delivery date the price prevailing in the market is actually $95,000, which...
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fromChapter 6 / Lesson 7
Learn the definition of treasury bonds, understand their advantages and disadvantages, and explore U.S. treasury bond examples.