Each section will require approximately 500 words (approximately 2,000 words in total) - Obviously more words for questions that require explanations than calculations. Please also consider the marks for each question, which are identified at the end of the question.
Questions are as follows;
Question 1 - 25 marks
a) As at 1 July 2015, a T-bond had the listed spot price being $95.40, and the listed futures price being $95.60. An investor sold $100,000 T-bonds at par value, and bought a T-bond futures contract. On 1 August 2015, the T-bon... More