If You Sell a Futures Contract for U

question 10

Multiple Choice

If you sell a futures contract for U.S. Treasury bills and on the delivery date the interest rate of T-bills is higher than you expected, you will have

• A)lost money on your long position.
• B)gained money on your long position.
• C)lost money on your short position.
• D)gained money on your short position.

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Definitions:

Payables

Amounts owed by a company to suppliers or creditors for goods and services received.

Inventory

The raw materials, work-in-progress products, and completely finished goods that are considered to be the portion of a business's assets that is ready or will be ready for sale.

Asynchronization

The lack of synchronization; occurring not simultaneously or at different times or rates.

Financial Planning

Financial planning is the process of creating strategies for managing financial affairs and meeting life goals through the proper management of finances.