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

Appreciate the role of fairness and altruism in economic behavior, as illustrated by the dictator and ultimatum games.

Understand the implications of hardwired heuristics on the difficulty of changing behavior through information alone.

Grasp the concept of mental accounting and its influence on financial decision-making.

Understand the impact of social factors, such as the threat of rejection, on economic decisions.

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Definitions:

Extensor Digitorum Longus

A muscle in the lower leg that helps to extend the toes and dorsiflex the foot, aiding in walking and running.

Fibularis Tertius

A small muscle in the lower leg that helps with foot eversion and extension of the toes.

Gastrocnemius

A major calf muscle that is involved in walking, running, and jumping, aiding in the bending of the knee and the plantar flexion of the foot.

Antagonistically

Describes muscles that work in opposition to each other to enable movement, as when one muscle contracts, the antagonist relaxes.