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options for after the blank are treasury bond treasury bill treasury note eurodollar cd 3. Interest rate futures contracts 1. 2. 3. STEP: 2 of

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options for after the blank are

treasury bond

treasury bill

treasury note

eurodollar cd

3. Interest rate futures contracts 1. 2. 3. STEP: 2 of 3 Suppose that Alyssa forecasts that interest rates will increase over the next month, so she calls a broker and sells30 futures contracts on Treasury bills that have settlement dates for three months from now. If the futures contracts on Treasury bills represent $100,000 of par value, and the market value of the contract is 96-00, then Alyssa will have received $ in proceeds from the futures contracts. Suppose the market value of the contracts after one month is 90-00, and Alyssa decides she wants to offset her current position. If she wants to offset her position, Alyssa would futures contracts, resulting in a total of $ (Hint: Assume that there were no transaction costs and that the values you enter are all positive numbers.) Grade Step 2 TOTAL SCORE: 0.75/4 (to complete this step and unlock the next step)

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