A Company Has an Existing $900 000 Promissory Note Facility,which

Multiple Choice

A company has an existing $900 000 promissory note facility,which it will roll over in 90 days.It is concerned that interest rates will rise before the roll-over date and enters into a 90-day bank-accepted bill futures contract at 92.50.Three months later,the company closes out its futures position at 91.75.Using the following data,calculate the profit or loss position of the futures transactions.(Disregard margin calls and transaction costs.)

A) $1 601.58 profit
B) $1 601.58 loss
C) $1 779.54 profit
D) $1 779.54 loss