You Purchase an Interest Rate Futures Contract That Has an Initial

question 19

Multiple Choice

You purchase an interest rate futures contract that has an initial margin requirement of 15% and a futures price of $115,098.The contract has a $100,000 underlying par value bond.If the futures price falls to $108,000 you will experience a ______ percent loss on your money invested.

• A) 31
• B) 41
• C) 52
• D) 64

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Definitions:

Structural Complexity

The characteristic of an entity or system that has multiple parts and connections, making it complex in its architecture or makeup.

Vegetation

Plant life or total plant cover in an area, contributing to the habitat's ecosystem and providing resources for wildlife.

Correlated

When two or more variables are related in a way that changes in one variable mirror or are associated with changes in another.

Species Diversity

The variety of different species that exist within a specific ecological community or ecosystem.