The theoretical futures price of a Treasury bond futures contract calculated using the formula:\\n\ \n"Future value of the spot price of bond A on the first delivery date - Future value of all coupons paid on bond A on the first delivery date" \\n\\nis $101-12.\ \n\\nThe actual futures price is $99-15.\\n\\nThe eligible deliverable bonds consist of bonds A, B, C, D, E, F, G, H, I, J, K, L, M, N.\\n\\nWhich of the following is correct?\\n\\n\\na.\\nA riskless arbitrage can be conducted by selling the futures contract and buying bond A\\n\\n\\nb.\\nlt is not possible to conduct a riskless arbitrage in this situation\\n\\n\\nc.\\nA riskless arbitrage can be conducted by buying the futures contract and short-selling bond A
The theoretical futures price of a Treasury bond futures contract calculated using the formula:\\n\ \n"
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