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Expert-verified Found in: Page 588 ### Essentials Of Investments

Book edition 9th
Author(s) Zvi Bodie, Alex Kane, Alan Marcus, Alan J. Marcus
Pages 748 pages
ISBN 9780078034695

# You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $115,098. The contract is traded on a$100,000 underlying par value bond. If the futures price falls to $108,000, what will be the percentage loss on your position? Answer Loss of 41.11% See the step by step solution ### Step by Step Solution ## Step 1: Given information Future’s price =$115,098

Margin requirement = 15%

Margin = $115,098 x 0.15 =$17,264.70

## Step 2: Calculation of percentage loss

Future price fall to = $108,000 Total loss =$115,098 - $108, 000 =$7,098

Percentage loss = Total loss / Total price

= $7,098 /$17,264.70

= 41.11% ### Want to see more solutions like these? 