Which of the Following Is True

question 20

Multiple Choice

Which of the following is true?

• A) The futures rates calculated from a Eurodollar futures quote are always less than the corresponding forward rate
• B) The futures rates calculated from a Eurodollar futures quote are always greater than the corresponding forward rate
• C) The futures rates calculated from a Eurodollar futures quote should equal the corresponding forward rate
• D) The futures rates calculated from a Eurodollar futures quote are sometimes greater than and sometimes less than the corresponding forward rate

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Definitions:

Transfer

The act of moving or passing an asset, title, right, or property from one party to another.

Signature

Under the Uniform Commercial Code, “any symbol executed or adopted by a party with a present intention to authenticate a writing.”

Time For Payment

The specific period designated for the remittance of funds owed under a contract or agreement.

Presentment

The act of presenting an instrument to the party liable on the instrument to collect payment; the act of presenting an instrument to a drawee for acceptance.