The Duration of the Futures Contract Used in the Price

question 11

Multiple Choice

The duration of the futures contract used in the price sensitivity hedge ratio is

• A)the duration of the spot bond being hedged using the futures price instead of the spot price
• B)the duration of the deliverable bond using the spot price
• C)the duration of the deliverable bond using the futures price
• D)the duration of the overall bond portfolio
• E)none of the above

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Definitions:

Billionaires

Individuals whose net worth or wealth is equal to or exceeds one billion units of a currency, often reflecting significant economic influence or power.

Tax Cuts

Tax cuts refer to reductions in the amount of taxes owed by individuals or corporations, often implemented to stimulate economic growth.

National Income

Net domestic product minus indirect business taxes.

Property Owners

Individuals or entities that hold legal title to land, buildings, or other types of real estate.