Mark Seby is thinking about doing some speculating in interest rates. He thinks rates will fall…

Mark Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of three-year Treasury bond futures should move from 94.89, their present quote, to a level of about 96. Given a required margin deposit of $955 per contract, what would Mark’s return on invested capital be if prices behave as he expects?

 

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