If a Financial Manager with an Interest Liability on a Future

question 1

Multiple Choice

If a financial manager with an interest liability on a future date were to sell Futures and interest rates end up going down, the position outcome would be:

• A) Futures price falls; short earns a profit.
• B) Futures price rises; short earns a loss.
• C) Future price falls; long earns a loss.
• D) Futures price rises; long earns a profit.

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Definitions:

Gender Inequalities

Disparities between individuals based on their gender, often manifested in differences in economic, political, social, and cultural opportunities, rights, and treatment.

Health

A state of complete physical, mental, and social well-being, not just the absence of disease or infirmity.

60-day Note

A 60-day Note is a short-term financial instrument or promissory note that promises repayment of the principal, along with any agreed interest, within 60 days.

Due Date

The specific date by which a payment must be made or a task completed.