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Assignment X2 question 2.1(i)

N

no_name

Member
Hi - sorry if this is a silly question, but when calculating the number of bond future contracts to buy, why does the answer use 1.162 rather than the index value of 116.2?
 
It does look odd. Usually bonds are quoted as a price per 100 nominal, rather than a price per £1 nominal. So 116, rather than 1.16. But when you want to work out the market value of a certain nominal of bond, its 100,000 * 1.16 or 100,000 * 116 / 100.
 
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