The Relationship Between the Spot Yield and the Yield Implied

question 21

Multiple Choice

The relationship between the spot yield and the yield implied by the futures price is called

• A)the yield beta
• B)the price sensitivity
• C)the tail
• D)the hedge ratio
• E)none of the above

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Definitions:

Orientation

A process or state of being oriented; can refer to one's position in space, direction, or adjustment to a new environment.

Affects

Refers to the experience of feeling or emotion in psychology, influencing an individual's behavior and perceptions.

Siblings

Brothers or sisters; individuals having one or both parents in common.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.