the economics of money, banking, and financial markets

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14.3 Financial Futures Contracts and Markets

1. 
   

   Futures contracts are regularly traded on the ____.
   A) Montreal Exchange
   B) Toronto Stock Exchange
   C) American Stock Exchange
   D) Chicago Board of Options Exchange
   Answer: A
   Diff: 1 Type: MC Page Ref: 326
   Skill: Recall
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

   
   


2. 
   

   If you buy in March a bond future contract for 115 that matures on June 30 of the same year,
   and at the maturity date the same future sells for 110, you have a ____ of $____.
   A) loss; 5000
   B) loss; 5
   C) profit; 5000
   D) profit; 5
   Answer: A
   Diff: 2 Type: MC Page Ref: 326
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

   
   


3. 
   

   If you buy in February a bond future contract for 120 that matures on June 30 of the same
   year, and at the maturity date the same future sells for 110, you have a ____ of $____.
   A) loss; 10000
   B) loss; 1 0
   C) profit; 10000
   D) profit; 10
   Answer: A
   Diff: 2 Type: MC Page Ref: 326
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

   
   


4. 
   

   If you buy in March a bond future contract for 97 that matures on June 30 of the same year,
   and at the maturity date the same future sells for 93, you have a ____ of $____.
   A) loss; 4000
   B) loss; 4
   C) profit; 4000
   D) profit; 4
   Answer: A
   Diff: 2 Type: MC Page Ref: 326
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps