You Own a 6-Month Futures Contract on U

question 6

Multiple Choice

You own a 6-month futures contract on U.S. Treasury notes. The underlying notes have a duration of 3.87 years. What is the duration of the futures contract?

• A)3.37 years
• B)3.67 years
• C)3.87 years
• D)4.12 years
• E)4.37 years

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Definitions:

Project Management

The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

Organizations

Groups or institutions comprising individuals working together to achieve common goals or objectives.

Critical Path Method

A project management technique for determining the longest sequence of dependent tasks and scheduling resources to optimize achievement of project objectives.

PERT Chart

A project management tool used to schedule, organize, and coordinate tasks within a project, standing for Program Evaluation and Review Technique.