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Which of the Following Statements Regarding BAB Futures Contracts Traded

Question 79

Multiple Choice

Which of the following statements regarding BAB futures contracts traded on the ASX is FALSE?


A) The face value of each contract is $1 million.
B) The prices at which contracts trade reveal the 90-day forward rates.
C) The value of the BAB futures contract is 100 minus the yield.
D) The contract item is always 90-day BABs.
E) Contract dates are Mar/Jun/Sep/Dec for the next 5 years.

Correct Answer:

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