If You Sell a $100,000 Interest-Rate Futures Contract for 110,and

question 44

Multiple Choice

If you sell a $100,000 interest-rate futures contract for 110,and the price of the Treasury securities on the expiration date is 106,your ________ is ________.

• A)profit;$4000
• B)loss;$4000
• C)profit;$6000
• D)loss;$6000

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Definitions:

Full Disclosure Principle

An accounting guideline requiring companies to disclose all relevant financial information in their financial statements.