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If a Financial Manager Earning Interest on a Future Date

Question 18

Multiple Choice

If a financial manager earning interest on a future date were to buy Futures and interest rates end up going down, the position outcome would be:


A) Futures price falls; short earns a profit.
B) Futures price rises; short earns a loss.
C) Future price falls; long earns a loss.
D) Futures price rises; long earns a profit.

Correct Answer:

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