4 Anna decides to buy a Treasury note futures contract for delivery of $100,000 faceamount in June, at a price of 110'16.5. At the same time, Max decides to sell aTreasury note futures contract if he can get a price of 110'16.5 or higher. Theexchange, in turn, agrees to sell one Treasury note contract to Anna at 110'16.5 ahdto buy one contract from Max at 110'16.5. The price of the Treasury note decreasesto 110'5.5. Calculate Anna's gain/loss.Please note that loss should be entered with minus sign.Round the answer to two decimal places.Your Answer:Answer

Face Value = $100000 Price is quoted as 32nd of the dollar. So, here, Price on June is 110'16.5 is:…

Answered: Anna decides to buy a Treasury note…

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter7: International Arbitrage And Interest Rate Parity

Section: Chapter Questions

Problem 3SBD

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