Tom Buys a Futures Contract for U

question 97

Multiple Choice

Tom buys a futures contract for U.S. Treasury bonds and on the settlement date the interest rate on U.S. Treasury bonds is lower than Tom expected. Tom will have:

• A) lost money on his long position.
• B) gained money on his long position.
• C) lost money on his short position.
• D) gained money on his short position.

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Definitions:

Data Value

A specific piece of information, often numerical, that is collected, analyzed, or stored as part of a data set.

Outlier

A data point that significantly differs from the other data points in a dataset, often indicating a measurement error or a unique case.

Correlation Coefficient

A value that quantifies both the magnitude and the direction of a straight-line association between a pair of variables.

Box Plot

A graphical representation of the distribution of a data set, showing the median, quartiles, and outliers, used for depicting the spread and skewness of the data.