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Elliott Company sold one T-Bill futures contract when the quoted price was 101.25. When the position was closed out, the price of the T-Bill futures

  1. Elliott Company sold one T-Bill futures contract when the quoted price was 101.25. When the position was closed out, the price of the T-Bill futures contract was 99.12.

A. Did interest rates increase or decrease? How do you know?

B. What was Elliotts profit or loss from this contract (ignoring transaction costs)?

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