If You Sell a $100,000 Interest-Rate Futures Contract for 105,and

question 74

Multiple Choice

If you sell a $100,000 interest-rate futures contract for 105,and the price of the Treasury securities on the expiration date is 108,your ________ is ________.

• A)profit;$3000
• B)loss;$3000
• C)profit;$8000
• D)loss;$8000

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Definitions:

Judicial Dissolution

A legal process through which a court orders the dissolution or termination of an entity such as a corporation or partnership based on certain grounds laid by law.

Deadlocked Directors

A situation in a board of directors where members are evenly divided on an issue, preventing a decision from being made.

Irreparable Injury

Harm that cannot be adequately remedied or compensated by monetary damages, thus potentially justifying injunctive relief.

Appraisal Remedies

Legal remedies that allow shareholders to receive a fair valuation and compensation for their shares, typically in cases of mergers or acquisitions.