If you purchase a $100,000 interest-rate futures contract for 105, and the price of the Treasury securities on the expiration date is 108, your ________ is ________
A) profit; $3000
B) loss; $3000
C) profit; $8000
D) loss; $8000
A
You might also like to view...
The Sarbanes-Oxley Act of 2002
A) requires that CEO's personally certify the accuracy of financial statements. B) mandates that firms raise funds for expansion only through the sale of stock or from bank loans, but not from the sale of corporate bonds. C) created the Consumer Financial Protection Bureau to be housed in the Federal Reserve. D) established the Financial Stability Oversight Council to identify risks to the financial system.
Suppose the official unemployment rate is 10 percent. We can conclude without question that:
a. one of every 10 people in the civilian labor force is currently unemployed. b. the same 10 percent of the people in the economy were out of work for the entire year. c. every person in the civilian labor force was out of work for 10 percent of the year. d. the same 10 percent of the people in the civilian labor force were out of work for the entire year.
Which of the following is an example of outsourcing?
a. When production of economics textbooks, management textbooks, and finance textbooks can be done by a single publishing company at lower average cost than by separate publishing companies that specialize in just one topic. b. When a firm produces 600,000 units per month to realize the minimum average cost of producing a unit of output. c. When a firm finds that it is more profitable to contract for certain inputs or functions supplied by others than to produce those inputs or functions itself. d. When a steel company integrates backward to mine iron ore and even the coal used to smelt iron ore.
The opportunity cost of producing in low-income, developing countries rises over the product cycle, according to theory
Indicate whether the statement is true or false