Tom Buys a Futures Contract for U

question 35

Multiple Choice

Tom buys a futures contract for U.S.Treasury bonds and on the settlement date the interest rate on U.S.Treasury bonds is lower than Tom expected.Tom will have:

• A)Lost money on his long position.
• B)Gained money on his long position.
• C)Lost money on his short position.
• D)Gained money on his short position.

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Definitions:

Circadian Rhythms

Circadian Rhythms are natural, internal processes that regulate the sleep-wake cycle and repeat roughly every 24 hours, affecting various physiological processes in organisms.

Biological Clock

An internal mechanism in organisms that controls the cycle of various physiological functions, such as sleep and wakefulness.

Functioning

The action or purpose for which a person or thing is suited or employed, especially with regard to normal or healthy operation.

Disruptions

Interruptions or disturbances that prevent a system, process, or event from continuing as usual or expected.