If a Financial Manager Earning Interest on a Future Date

question 32

Multiple Choice

If a financial manager earning interest on a future date were to buy Futures and interest rates end up going up, the position outcome would be:

• A) Futures price falls; short earns a profit.
• B) Futures price rises; short earns a loss.
• C) Future price falls; long earns a loss.
• D) Futures price rises; long earns a profit.

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Definitions:

P-Value Approach

The p-value approach involves determining the smallest level of significance at which the null hypothesis would be rejected, based on the observed data.

Management Position

A role within an organization responsible for overseeing operations, directing staff, and making strategic decisions.

Major of Concentration

A specific area of study that a student focuses on during their academic career.

P-Value Approach

A statistical method that helps in determining the significance of results, indicating the probability of observing the results given that the null hypothesis is true.