USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 140

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A three-month T-bond futures contract (maturity 20 years, coupon 6 percent, face $100,000) currently trades at $98,781.25 (implied yield 6.11 percent) . A three-month T-note futures contract (maturity 10 years, coupon 6 percent, face $100,000) currently trades at $101,468.80 (implied yield 5.80%) . Assume semiannual compounding.
-Refer to Exhibit 15.4. If you expected the yield curve to steepen, the appropriate NOTE AGAINST BOND futures spread strategy would be

• A) go long the T-bond and short the T-note.
• B) go short the T-bond and long the T-note.
• C) go long the T-bond and long the T-note.
• D) go short the T-bond and short the T-note.
• E) None of these are correct.

Distinguish between binding and persuasive precedents, and identify examples of each.

Understand the role of equitable principles and remedies in the judicial system.

Differentiate between courts of law and courts of equity, and identify the types of remedies each can grant.

Describe the influence of public policy on legal decisions and the concept of governmental policy based on societal values.