Identify the Correct Statement

question 3

Multiple Choice

Identify the correct statement.For an interest rate Eurodollar futures contract:

• A) the quoted futures price equals the price used to determine daily settlement
• B) the quoted futures price equals 100 minus the futures interest rate
• C) the futures interest rate is a continuously compounded rate
• D) the futures interest rate is the same as the FRA rate
• E) interest rate futures have no cash flows until the futures delivery date

---

Definitions:

Cohesion

The degree to which members of a group or unit feel connected and remain committed to staying together.

Behavioral Norms

Accepted behaviors within a society or group, which are considered normal or typical.

Work-Related Tensions

Stresses or conflicts arising from job demands, role expectations, or workplace relationships.

Upper Echelons

A theory suggesting that an organization is a reflection of its top executive's personal characteristics, values, and background.