If a Financial Manager with an Interest Liability on a Future

question 44

Multiple Choice

If a financial manager with an interest liability on a future date were to sell Futures and interest rates end up going up, the position outcome would be:

• A) Futures price falls; short earns a profit.
• B) Futures price rises; short earns a loss.
• C) Future price falls; long earns a loss.
• D) Futures price rises; long earns a profit.

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Definitions:

Genetically Predisposed Traits

Characteristics or conditions that individuals are more likely to develop due to their genetic makeup.

DNA Called Genes

Segments of DNA that carry the genetic information necessary for the coding of proteins and are inherited from one generation to another.

Chromosomes

Filamentous entities situated in the nucleus of both animal and plant cells, composed of protein and a solitary DNA molecule, responsible for transmitting genetic data.

Segments

Divisions or parts of a whole, often used in reference to parts of organizations, markets, or society.