The Duration of an Interest Rate Futures Contract Is Equal

question 72

Multiple Choice

The duration of an interest rate futures contract is equal to the summation of which of the following?
I. duration of the instrument most likely to be used as a cross-hedge
II. duration of the underlying instrument
III. initial length of time of the futures contract
IV. time remaining on the futures contract

• A)II only
• B)I and II only
• C)I and III only
• D)II and III only
• E)II and IV only

---

Definitions:

Karma

In several Eastern religions, the concept that good or bad actions in this life can determine the nature of one's future lives or fate.

Hierarchical System

A structure where individuals or entities are ranked one above the other according to status or authority.

Ordered Universe

An ordered universe is a concept proposing that the universe is structured in a logical and systematic way, followable through scientific and philosophical inquiry.

Demographics

Statistical data relating to particular populations, especially those concerning individuals' characteristics such as age, race, gender, income, and education.