What Is the Absolute Price Difference on a $100,000, 5-Year

question 75

Multiple Choice

What is the absolute price difference on a $100,000, 5-year Treasury note futures contract between the opening and closing prices?
Treasury note, $100,000, pts and one-quarter of 1/32 of a point

• A) $428.13
• B) $512.08
• C) $625.33
• D) $767.00
• E) $811.33

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Definitions:

Sampling Distribution

Sampling Distribution is the probability distribution of a given statistic based on a random sample, used to make inferences about a population.

Sample Proportion

The ratio of members in a sample exhibiting a certain trait to the total number of members in the sample.

Central Limit Theorem

A principle stating that the distribution of sample means approaches a normal distribution as the sample size becomes larger, regardless of the population's distribution.

Standard Errors

A statistical term that describes the estimated standard deviation of a sampling distribution of a statistic, often used in hypothesis testing.