Sue Sells a Futures Contract for U

question 36

Multiple Choice

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

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

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Definitions:

First Year

Pertains to the initial period of time, typically referring to the first 12 months, in various contexts such as a company's operations, an educational program, or an individual's experience in a new role.

Business

Business refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Financial Documents

Official records that detail an entity’s financial activities and condition, such as balance sheets, income statements, and tax returns.