If a Financial Manager Earning Interest on a Future Date

question 32

Multiple Choice

If a financial manager earning interest on a future date were to buy Futures and interest rates end up going up, 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:

Army of the Potomac

The primary Union fighting force in the Eastern Theater of the American Civil War, notable for its role in major battles and campaigns under various commanders.

U.S. Military Academy

Also known as West Point, a prestigious institution that educates and trains officers for the United States Army.

Economic Problems

Issues related to the production, distribution, and consumption of goods and services, often resulting in unemployment, inflation, or recessions in a country's economy.

Confederacy

A federation of southern states that seceded from the United States from 1861 to 1865, leading to the American Civil War.