A Trader Enters into a Long Position in One Eurodollar

question 12

Multiple Choice

A trader enters into a long position in one Eurodollar futures contract.How much does the trader gain when the futures price quote increases by 6 basis points?

• A) $6
• B) $150
• C) $60
• D) $600

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Definitions:

Photosynthetic Organisms

Organisms that convert light energy into chemical energy through the process of photosynthesis, including plants, algae, and some bacteria.

Hydrogen

The lightest and most abundant chemical element in the universe, consisting of just one proton and one electron.

Amphibians

A group of cold-blooded vertebrates characterized by their ability to live both in water and on land, undergoing metamorphosis from a larval stage to an adult.

Carboniferous

A geologic period and system that extends from the end of the Devonian Period, about 359.2 million years ago, to the beginning of the Permian Period, about 299 million years ago.