You purchase an interest rate futures contract that has an initial margin requirement of 15% and a futures price of $115,098. The contract has a $100,000 underlying par value bond. If the futures price falls to $108,000, you will experience a ________ loss on your money invested.
A) 31%
B) 41%
C) 52%
D) 64%

Question

Quizplus · Accepted Answer

Margin = 115,098 × 0.15 = 17,264.7
Loss % = (108,000 − 115,098)/17,264.7 = −41%

You Purchase an Interest Rate Futures Contract That Has an Initial