Answer the following questions in regard to a Treasury futures contract expiring in 6 months. Q1 (3pts) - What is the fa

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Answer the following questions in regard to a Treasury futures
contract expiring in 6 months.
Q1 (3pts) - What is the fair value of the futures contract?
Q2 (3pts) - Assuming the futures contract is currently trading
at 99.25, should you open a long or a short contract to earn an
arbitrage profit?
Q3 (3pts) - Using the standard holding period return formula,
calculate the total return of your trade assuming you open a
contract at 99.25 and close the position at the fair value
calculated in Q1. You earn no income.
Group of answer choices
Q1
[ Choose
]
2.31%
97.51
101.49
2.30%
Neither short nor long - futures price is fair
Short
97.49
2.29%
101.51
2.28%
2.32%
Long
Q2
Q3