Which of the Following Is True About the 90-Day Bank

Multiple Choice

Which of the following is true about the 90-day bank accepted bill futures contract? choose one)

A) The contract is cash settled, rather than settled with delivery of physical securities
B) The contract is not settled daily
C) The interest rate of this futures contract is lower than the corresponding forward interest rate for long maturities
D) This futures contract is used to estimate the forward rates in order to construct a zero curve