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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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    https://brainmass.com/business/futures/t-bond-futures-change-in-equity-for-a-short-position-15672

    Solution Preview

    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
    ...

    Solution Summary

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

    $2.49

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