bodhisattva

What is the futures contract on? -- it is on a bond.
what is the bond that would be delivered -- the cheapest to deliver bond.

so in option 1) even though they do not specifically mention it -- that is how it is...

not sure if a futures contract on a bond to be delivered is on a fixed bond. It is upto the "seller" of the bond to decide which bond he would deliver - and more often than not it would be the CTD bond.

CP