How Many Significant Figures Are There in the Answer for the Following

question 24

Multiple Choice

How many significant figures are there in the answer for the following problem? = ?

• A)one
• B)two
• C)three
• D)four

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Definitions:

Treasury Bonds

Long-term government debt securities with a fixed interest rate, considered low-risk investments.

Interest Rate Futures

Financial derivatives contracts that lock in the future delivery of an asset based on interest rates, commonly used for hedging and speculating on future interest rate movements.

Hedge

An investment made to reduce the risk of adverse price movements in an asset, often involving derivatives like options and futures.

Basis Risk

Risk attributable to uncertain movements in the spread between a futures price and a spot price.