The current price of June $100,000 T-Bonds trading on the Chicago Board of Trade is 109-24.What is the price to be paid if the contract is delivered in June?
A)$107,240.
B)$109,240.
C)$109,750.
D)$110,250.
E)$115,760.

Question

Quizplus · Accepted Answer

The price of a T-Bond contract is calculated by multiplying the quoted price by $1,000. The quoted price is in 32nds of a dollar, so 109-24 means 109 and 24/32. The calculation is (109 + 24/32) * $1,000 = $109,750.

The Current Price of June $100,000 T-Bonds Trading on the Chicago