When an Interest-Bearing Security Is the Underlying Asset for a Futures

question 53

Multiple Choice

When an interest-bearing security is the underlying asset for a futures contract, it is called:

• A) a forward contract.
• B) an interest rate futures.
• C) a commission futures.
• D) a speculative futures.
• E) an interest rate swap.

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Definitions:

Validity

Degree of correspondence between a measurement and the phenomenon under study.

Constructability

A concept in engineering that assesses how efficiently a structure or system can be built, considering all practical aspects of construction.

Generalizability

The extent to which findings from a study or research can be applied to broader contexts or with different groups.

Reliability

Degree of consistency in a measurement— that is, the extent to which it yields accurate measurements of a phenomenon across several trials, across different populations, and in different forms.