If a Company Has the Opportunity to Bid on Three

question 15

True/False

If a company has the opportunity to bid on three contracts, A, B, and C, then the number of these contracts that are awarded to the company would be considered an elementary event.

---

Definitions:

Long

An investment strategy where an investor purchases a security with the expectation that it will increase in value over time.

Futures Contract

An agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Underlying Asset

An asset (such as a stock, bond, commodity, or currency) upon which a derivative instrument, such as an option, is based.

Interest Rate Futures

Financial futures contracts that obligate the buyer to purchase an asset (like Treasury bills) with a fixed interest rate at a future date.