## Derivatives Quiz-1 Q5

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

### Derivatives Quiz-1 Q5

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

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

### Derivatives Quiz-1 Q5

I think the question is incomplete.

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

### Derivatives Quiz-1 Q5

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 .

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