On January 1, the listed spot and futures prices of a Treasury bond were 95.4 and 95.6. You sold $100,000 par value Treasury bonds and purchased one Treasury bond futures contract. One month later, the listed spot price and futures prices were 95 and 94.4, respectively. If you were to liquidate your position, your profits would be a

If you were to liquidate your position, your profits would be $800

Explanation:

Given the data in the question;

On the first of January,   listed spot and futures prices of a Treasury bond were 95.4 and 95.6.

After a month, the listed spot price and futures prices were 95 and 94.4.

sold $100,000 par value Treasury bonds and purchased one Treasury bond futures contract.

Now,

we determine the Change in the value of bond purchased in spot

⇒ ( 95 - 95.4 )% × $100,000

= -0.4% × $100,000

= -$400

Next, we determine the Change in the value of bond sold in futures

⇒ ( 95.6 - 94.4 )% × $100,000

= 1.2% × $100,000

= $1200  

Hence, change in the value of combined position will be;

⇒ ( -$400 ) + ( $1200 ) = $800

Therefore, If you were to liquidate your position, your profits would be $800

i tried to get the answer but i could not find it

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.