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An investor buys an ST3 futures contract @ 98.25 The contracts mature a week later at the EDSP of 98.20. (tick size = 0.01) Which of these is an incorrect statement? A. The interest rate of the underlying has increased by 0.05%. B. The price of the futures has fallen by 5 ticks. C. The investor's margin account shows a profit of £62.50. D. The interest rate on the underlying at expiry is 1.80%

An investor buys an ST3 futures contract @ 98.25 The contracts mature a week later at the EDSP of 98.20. (tick size = 0.01) Which of these is an incorrect statement? A. The interest rate of the underlying has increased by 0.05%. B. The price of the futures has fallen by 5 ticks. C. The investor's margin account shows a profit of £62.50. D. The interest rate on the underlying at expiry is 1.80%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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5) This is an exercise about financial futures. Can you please check the picture and answer the question? Only one option is right (A, B, C, or D).

An investor buys an ST3 futures contract @ 98.25 The contracts mature a week later at the EDSP of 98.20. (tick size = 0.01) Which of these is an incorrect statement? A. The interest rate of the underlying has increased by 0.05%. B. The price of the futures has fallen by 5 ticks. C. The investor's margin account shows a profit of £62.50. D. The interest rate on the underlying at expiry is 1.80%.
Transcribed Image Text:An investor buys an ST3 futures contract @ 98.25 The contracts mature a week later at the EDSP of 98.20. (tick size = 0.01) Which of these is an incorrect statement? A. The interest rate of the underlying has increased by 0.05%. B. The price of the futures has fallen by 5 ticks. C. The investor's margin account shows a profit of £62.50. D. The interest rate on the underlying at expiry is 1.80%.
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