You Own a 6-Month Futures Contract on U

question 6

Multiple Choice

You own a 6-month futures contract on U.S. Treasury notes. The underlying notes have a duration of 3.87 years. What is the duration of the futures contract?

• A)3.37 years
• B)3.67 years
• C)3.87 years
• D)4.12 years
• E)4.37 years

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Definitions:

Failures of Substance

Significant shortcomings or mistakes that impact the performance or credibility of an entity.

Differentiation Strategy

A business strategy where a company seeks to distinguish its products or services from competitors through unique features and attributes.

Strategic Objective

A long-term goal that an organization seeks to achieve, which is designed to guide its direction and help it secure a competitive advantage.

Failures of Process

Situations where planned processes do not achieve their goals, leading to inefficiency, loss, or other negative outcomes.