A Futures Trader Anticipates That Interest Rates Will Rise More

question 13

Multiple Choice

A futures trader anticipates that interest rates will rise more than what the financial markets expect.He would profit by

• A)waiting until the rates rise,then buy a futures contract
• B)waiting until the rates rise,then sell a futures contract
• C)buy a contract now,and sell it after the rates rise
• D)sell a contract now,and buy it back after the rates rise

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Definitions:

Two Independent Samples

Refers to separate groups of data collected from different populations, where individuals in one sample have no relation to individuals in the other.

Test Statistic

An estimate gained from sample data analysis, applied in hypothesis testing to weigh the decision of rejecting the null hypothesis.

Unequal-variances Test

A statistical test used when comparing two groups that have different variances, often applied in t-tests.

Marketing Consultant

A professional who advises businesses on strategies to promote and sell products or services more effectively.