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Identify the Correct Statement

Question 3

Multiple Choice

Identify the correct statement.For an interest rate Eurodollar futures contract:


A) the quoted futures price equals the price used to determine daily settlement
B) the quoted futures price equals 100 minus the futures interest rate
C) the futures interest rate is a continuously compounded rate
D) the futures interest rate is the same as the FRA rate
E) interest rate futures have no cash flows until the futures delivery date

Correct Answer:

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