Which of the following futures contracts would not have an interest rate component?
A) Treasury bonds
B) Treasury notes
C) Municipal Bond Index
D) Standard and Poor's 500 Stock Index

Question

Quizplus · Accepted Answer

The Standard and Poor's 500 Stock Index future does not have an interest rate component as it is based on the stock price performance of 500 large companies listed on stock exchanges in the United States. The other choices, Treasury bonds and notes and Municipal Bond Index futures all involve fixed income securities and their respective interest rates.

Which of the Following Futures Contracts Would Not Have an Interest