An interest-rate futures contract calls for the delivery of:
A) A cash payment
B) Gold
C) Either gold, silver or platinum
D) A fixed-income securities
E) Interest-sensitive stock

Question

Quizplus · Accepted Answer

An interest-rate futures contract is a financial derivative that allows investors to hedge or speculate on changes in interest rates. The contract calls for the delivery of a fixed-income security, such as a bond, at a specified date in the future with a predetermined price. Therefore, choice D is the correct option. The other choices - cash payment, gold, silver, platinum, and interest-sensitive stock - are not relevant to interest-rate futures contracts.

An Interest-Rate Futures Contract Calls for the Delivery Of