1. You long one Eurodollar futures (notional value $1 million). On the next day, the 3-month LIBOR rate increases 4 basis points. How much do you gain or lose?

A)400

B)-400

C)100

D)-100

2. How many days of interest are earned between July 30 and August 1 if we use 30/360?

A)3

B)4

C)1

D)2

3.If you currently receive a floating income and want to have a stable income in the future, you enter a swap and play the role of *

A)Floating rate payer

B)Fixed rate payer

C)Floating rate receiver

D)None of them.

4.What is the dollar amount if a treasury bond is quoted 89-05 (rounding to the second decimal)?*

A)$89.05

B)$89.50

C)$89.16

D)$89.61