The average duration of the loans is 10 years. The average duration of the deposits is 3 years. ![The average duration of the loans is 10 years. The average duration of the deposits is 3 years. What is the gain or loss on the futures position using T-Bonds (Duration = 9 years, $96 per $100 face value) if the shock to interest rates is 1 percent [i.e. ΔR/(1 + R) = 0.01 and ΔR<sub>f</sub>/(1 + R<sub>f</sub>) = 0.011]? A) $16,320,960 loss. B) $16,312,320 gain. C) $15,552,750 gain. D) $15,552,750 loss. E) $13,252,250 gain.](https://d2lvgg3v3hfg70.cloudfront.net/TB2400/11ea6441_1848_d749_9252_cd7ba8ad0760_TB2400_00.jpg)
What is the gain or loss on the futures position using T-Bonds (Duration = 9 years, $96 per $100 face value) if the shock to interest rates is 1 percent [i.e. ΔR/(1 + R) = 0.01 and ΔRf/(1 + Rf) = 0.011]?
Definitions:
Self-monitoring
The practice of observing and recording one's own behaviors, thoughts, or emotions to gain self-awareness or modify behavior.
Reactivity
The tendency of individuals to alter their performance or behavior due to the awareness that they are being observed.
Negative Stimulus
Any object, event, or situation that causes a negative response or reaction from an individual.
Target Response
A specific behavior that is selected for change or reinforcement in a behavioral intervention.
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