Which of the following statements about futures contracts on U.S. exchanges is least likely accurate? A) A $100,000 Treasury bond futures contract that settles at 102-16 represents Treasury bonds worth $102,500. B) The value of an S&P 500 Index Futures contract with a multiplier of $250 has a value of $354,575 on the settlement date if the index value on that date is 1418.3. C) Prices of currency futures contracts are quoted as U.S. dollars per unit of the foreign currency. D) If annualized 90-day LIBOR decreases from 3.64% to 3.58%, a long position in a $1 million Eurodollar futures contract loses $150.
The answer says D. Explanation: When LIBOR decreases, a long position in Eurodollar contract GAINS. I dont know why it gains and not loses. Anyone?
I got no idea actually ha