Sue Buys a Futures Contract for U

question 76

Multiple Choice

Sue 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 Sue expected. Sue will have:

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

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Definitions:

Decibels

A unit of measurement for the intensity of sound, indicating the pressure level of sound waves.

Hertz

The unit of frequency in the International System of Units (SI), representing one cycle per second, used to measure wave frequencies such as sound waves or brainwaves.

Monocular Cue

Visual information that provides depth perception from a single eye by using cues of linear perspective, texture gradient, and motion parallax.

Perspective

A monocular cue for depth based on the convergence (coming together) of parallel lines as they recede into the distance.