You Are Short An $3 \times 6$ FRA and Short a Eurodollar Futures Contract Expiring in 3

question 24

Multiple Choice

You are short an $3 \times 6$ FRA and short a eurodollar futures contract expiring in 3 months. Assume the fixed rate in the FRA is the same as the rate locked in via the eurodollar futures contract. If interest rates jump up by 100 basis points,

• A) You will lose money on both the FRA and the eurodollar futures.
• B) You make money on the FRA but lose on the eurodollar futures.
• C) You make money on both the FRA and the eurodollar futures.
• D) You lose money on the FRA but make money on the eurodollar futures.

Understand the role of the limbic system in emotional and motivational aspects of behavior.

Identify the impact of external factors, such as alcohol, on the functioning of vital brain centers.

Understand the concept of operating cash flow and its calculation.

Comprehend the importance of net present value (NPV) in determining bid prices and evaluating projects.

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