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:

Goods

Tangible, movable items or merchandise that can be bought, sold, or traded, excluding real estate.

Assignor

A person who assigns rights or delegates duties under an assignment.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

General Course

A broad educational path focusing on a wide range of subjects or skills.