A Trader Uses 3-Month Eurodollar Futures to Lock in a Rate

question 18

Multiple Choice

A trader uses 3-month Eurodollar futures to lock in a rate on $5 million for six months.How many contracts are required?

• A) 5
• B) 10
• C) 15
• D) 20

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Definitions:

Meta-Analysis

A statistical method that combines results from multiple independent studies.

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Self-fulfilling Prophecy

The phenomenon whereby an individual's or other's expectations about a subject can lead to the expected outcome actually happening.