You Purchase an Interest Rate Futures Contract That Has an Initial

question 19

Multiple Choice

You purchase an interest rate futures contract that has an initial margin requirement of 15% and a futures price of $115,098.The contract has a $100,000 underlying par value bond.If the futures price falls to $108,000 you will experience a ______ percent loss on your money invested.

• A) 31
• B) 41
• C) 52
• D) 64

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Definitions:

Suicide Contagion

Phenomenon in which the suicide of a well-known person is linked to the acceptance of suicide by people who closely identify with that person.

Suicidality

The risk or tendency towards suicide, including thoughts, plans, and attempts.

Cognitive Rigidity

The tendency to be closed to new ideas or approaches; difficulty in changing mental frameworks or strategies.

Rumination

Focusing on one’s personal concerns and feelings of distress repetitively and passively.