Use the Following Information to Answer Questions 22 Through 24

question 18

Multiple Choice

Use the following information to answer questions 22 through 24.On October 1,the one-month LIBOR rate is 4.50 percent and the two month LIBOR rate is 5.00 percent.The November Fed funds futures is quoted at 94.50.The contract size is $5,000,000.
-The dollar value of a one basis point rise in the Fed funds futures price is

• A)-$25.00
• B)$41.67
• C)$5,000
• D)$25.00
• E)none of the above

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Definitions:

Magnitude

The size, extent, or importance of something.

Contribution

The act of giving or supplying something (such as knowledge, materials, or effort) towards a common goal or project.

Prospective Coalition

An anticipated alliance or partnership among individuals or groups with the intention of achieving common goals.

Members

Individuals who belong to a group, organization, or community, typically sharing a common interest or purpose.