A Calendar Spread Futures Position Comprises

question 15

Multiple Choice

A calendar spread futures position comprises

• A) A long position in a futures contract of one maturity and a short position in another futures contract of a different maturity.
• B) A contract on the difference between two different-maturity futures prices.
• C) A portfolio of long futures contracts of different maturities.
• D) A portfolio of futures contracts spanning more than one year.

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Definitions:

Direct Exchange Rate

A foreign exchange rate quoted as the home country's currency per unit of the foreign currency.

Euros

The official currency of the Eurozone, which consists of 19 of the 27 European Union countries, serving as a major global reserve currency.

Value of the Dollar

A measure of the U.S. dollar's strength relative to other currencies, impacting international trade and investment.

Spot Exchange Rate

The prevailing rate at which one currency can be swapped for another for instant settlement.