The gain or loss to a bank from the use of a financial futures contract depends upon:

Question

Quizplus · Accepted Answer

The gain or loss to a bank from the use of a financial futures contract depends on various factors including the duration of the underlying security (which affects its price sensitivity to interest rate changes), the initial futures price (which sets the baseline for gains or losses), and the change expected in interest rates (which directly impacts the futures contract's value). Therefore, all the options provided are correct.

The Gain or Loss to a Bank from the Use