Derivatives Quiz-1 Q5

rahulgarg225
Posts: 5
Joined: Sun Nov 24, 2013 5:01 am

Derivatives Quiz-1 Q5

Postby rahulgarg225 » Sun Nov 24, 2013 5:05 am

A 90-day T-Bill Future is quoted price at 98. Calculate the delivery price
Choose one answer.
a. $98
b. $980,000
c. $995,000
answer was given choice c without any explanation .help me out plz

pradeeppdy
Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm

Derivatives Quiz-1 Q5

Postby pradeeppdy » Mon Nov 25, 2013 5:51 am

I think the question is incomplete.
Please provide the source.

pradeeppdy
Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm

Derivatives Quiz-1 Q5

Postby pradeeppdy » Fri Apr 04, 2014 7:09 am

T bills quoted price is 98 . So it is 2% discount and it is a 90 day T bill . Its value can be calculated as follows :
1000000 (1- 0.02*90/360) = 1000000 * 0.995 = $ 995000 ans So C is correct choice .


Return to “FRM Part I”



Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.