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:

Psychology Experiments

Research methods in psychology that involve manipulating variables to study effects on behavior or mental processes in a controlled environment.

Behavior

Actions or reactions of an individual in response to external or internal stimuli.

Random Sample

A method of selecting a subset of individuals from a population in which each individual has an equal probability of being chosen.

Informed Consent

A process by which a participant is made fully aware of a study's nature, procedures, and potential impacts before participating.