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T-bond futures : change in equity for a short position

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The contract size for T-bond futures is $100,000. If bond futures decline from 96-04 to 94-12 the change in equity in a one-contract short futures position would be? (ignore transaction cost)

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Solution Summary

The solution calculates the change in equity in a one-contract short futures position for a T-bond futures contract.

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The bond prices are quoted in dollars and 32 nds of a dollar
Thus a quote of 96-04 means 96 4/32 dollars= $96.1250
A quote of 94-12 means 94 12/32 dollars= $94.3750
...

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