SECTION 3.1 THE EFFECTIVE ANNUAL RATE IS CALCULATED AS FOLLOWS

1.) The number of Nikko Bond Performance Index futures Sato must sell to rebalance the

Tsushima pension fund to its target allocation is closest to:

A. 743.

B. 149.

C. 1,594.

Answer = A

“Risk Management Applications of Forward and Futures Strategies,” Don M. Chance