In June, an Investor Finds Out That in September She

Multiple Choice

In June, an investor finds out that in September she will receive $10 million to invest in three-month maturity securities.In June, the 91-day Treasury bill rate is 5.50 per cent.What is the investor's profit (loss) if the 91-day rate falls to 5.20 per cent in September?

A) The investor loses $30 000 because of the 30 basis point decline in interest rates.
B) The investor gains $30 000 because of the 30 basis point decline in interest rates.
C) The investor gains $7583 because of the 30 basis point decline in interest rates.
D) The investor loses $7583 because of the 30 basis point decline in interest rates.