Tom Buys a Futures Contract for U

question 40

Multiple Choice

Tom buys a futures contract for U.S. Treasury bonds and on the settlement date the interest rate on U.S. Treasury bonds is higher than Tom expected. Tom will have:

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

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Definitions:

Genetic Coefficient

A measure that quantifies the contribution of genetic differences to differences in a trait among individuals.

Evolutionary Psychology

The study of how evolutionary theory explains the structure and function of the human mind.

Extraversion

A personality trait characterized by sociability, talkativeness, assertiveness, and high levels of emotional expressiveness.

Adaptive

The ability or tendency to change or adjust effectively in response to different conditions or environments.