If We Buy a $100 90- Day Bank Bill Futures

Multiple Choice

If we buy a $100 90- day bank bill futures contract at $95.60, which of the following is true?

A) We pay $98.23 on settlement day.
B) We receive a bank bill on settlement day worth $95.60.
C) The bill will earn us 4.40% p.a. over 90 days starting from the settlement date.
D) There is a cash settlement involving us in paying $4.40.