QUESTION 11

If you have a long a position in $100,000 par value Treasury bond futures contract for 115, you agree to pay ________ for ________ face value securities.

		$100,000; $115,000
		$115,000; $100,000
		$86,956; $100,000
		$86,956; $115,000

1 points

QUESTION 12

If you have a short position in a bond futures contract, you expect that bond prices will ________.

		Rise
		Fall
		not change
		fluctuate

1 points

QUESTION 13

If you have a short position in a bond futures contract, you expect that interest rates will ________.

		Rise
		Fall
		not change
		fluctuate

1 points

QUESTION 14

Futures differ from forwards in that futures are

		used to hedge portfolios.
		used to hedge individual securities.
		used in both financial and foreign exchange markets.
		standardized contracts.

1 points

QUESTION 15

Another distinguishing characteristic of futures, compared to forwards, is that futures are

		used to hedge portfolios.
		used to hedge individual securities.
		used in both financial and foreign exchange markets.
		marked to market daily.

1 points

QUESTION 16

Who would be most likely to SELL stock index futures contract?

		A mutual fund manager who believes the market will rise
		A mutual fund manager who believes the market will fall
		A mutual fund manager who believes the market will be stable
		None of the above would be likely to purchase a futures contract