Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marking to market A) updating the function price after market close each day. B) changing the futures price to the each day. C) crediting or

image text in transcribed
Marking to market A) updating the function price after market close each day. B) changing the futures price to the each day. C) crediting or debuting the account based on the value of the futures contract. D) engaging in so as to reduce the risk involved with contracts. If you sell a futures constrict for U.S. Treasury note and on the delivery date the interest rate of T notes is high you will have A) lost money on your long positions. B) gained money on your long position. C) gained money on your shot position. D) lost money on your short position. Why do investors hedge using futures contracts? A) in order to provide a counterparty to B) they are willing to pay for a pay for a reduction in risk C) they are more flexible than forward contracts D) they are seeking to increase liquidity An options contract A) is another for a futures contract. Coafers the rights to buy or sell an underlying asset at a predetermined price by a predetermined time. c) instruments, but not equities. D) may be written for equities, but not for dept instruments. Marking to market A) updating the function price after market close each day. B) changing the futures price to the each day. C) crediting or debuting the account based on the value of the futures contract. D) engaging in so as to reduce the risk involved with contracts. If you sell a futures constrict for U.S. Treasury note and on the delivery date the interest rate of T notes is high you will have A) lost money on your long positions. B) gained money on your long position. C) gained money on your shot position. D) lost money on your short position. Why do investors hedge using futures contracts? A) in order to provide a counterparty to B) they are willing to pay for a pay for a reduction in risk C) they are more flexible than forward contracts D) they are seeking to increase liquidity An options contract A) is another for a futures contract. Coafers the rights to buy or sell an underlying asset at a predetermined price by a predetermined time. c) instruments, but not equities. D) may be written for equities, but not for dept instruments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions