A Trader Buys a 90-Day Eurodollar Futures Contract at 95

question 60

Multiple Choice

A trader buys a 90-day Eurodollar futures contract at 95.25.The next day, interest rates fall 4.5%.Which of the following is true? Assume that the initial and maintenance margins are $5,000.

• A)The trader would have to deposit an additional $62,500 into her account.
• B)The trader would have to deposit an additional $2,500 into her account.
• C)The trader would have to deposit an additional $625 into her account.
• D)The trader could withdraw $2,500 from her margin account.
• E)The trader could withdraw $625 from her margin account.

---

Definitions:

Substantive Negotiation

The process of discussing and making decisions on the actual issues at stake in a negotiation, rather than on procedural or relational matters.

Working Relationships

The interactions and connections that are established between colleagues and team members in a professional environment, impacting teamwork and organizational culture.

Ethical Considerations

Refers to the principles and values that guide behavior and decision-making based on notions of right and wrong.

Unethical Behaviour

Actions that are dishonest, immoral, or violate moral principles and standards.