A 30-day Federal Fund (FF) futures contract is an instrument that enables banks to lock in a Federal funds
interest rate for the 30-day period ending on the expiration of the contract.
FF futures are quoted as prices rather than as rates. The price quoted is 100 minus the 30-day Fed funds rate,
with the rate being expressed as a percentage (not in decimal form). For example, if you buy/sell 1 FF futures
at a price of $96.82, you lock in a Fed funds rate of 100 − 96.82 = 3.18% on your future lending/borrowing. The
security underlying the FF futures is a $5,000,000 30-day deposit or loan. Consider a bank that has surplus
cash of $10 million. The bank plans to lend this $10 million in the Fed funds market over June but to hedge its
risk, it decides to lock in a return by buying FF futures that expire on June 30.
a) Calculate the change in the value of one FF futures contract for a 1 basis point change in the Fed funds rate.
b) Suppose that the bank bought the futures today for $99.780, and their price at expiration (June 30) was
$99.824. Explain how the bank will meet its objective of locking in a return on its Fed funds lending over June.
Additionally, it includes a set of habits, etiquette, and social expectations derived from the home. If students can not relate new information for their experiences, or connect the new material to a comfortable idea, they may perceive the brand new information as irritating or difficult or may dismiss it completely, believing it to be in conflict with their already tenuous understanding of the world (Hemmings, C., 2006). I have witnessed how the Cultural Difference Theory personally affects people. I have family from rural areas that have fallen victim to this theory. While attending school, one of my cousins felt as though everything she was being taught did not relate to her everyday life. She felt like she didn’t have a purpose at school. She felt as though learning about past presidents had nothing to do with her learning how to get a job or how to build her credit so she can get a place of her own. She felt as though the thing she was learning in school was purposeless and in the end, she decided to drop out of school her junior year and began working. My plan to eradicate cultural differences within the classroom would involve me treating each student equally and holding each of them to the same standard. My middle-class students and my working-class students will not receive differentiated treatment solely based on class. My students will not be punished scholastically due to slang, dialects in which they use within the home and in their culture. I plan to educate my students about different words by using pictures and actual items to help my students learn the dialect. I will also make it my mission to learn the diverse cultural backgrounds my students are coming from so that I can develop an understanding of my students and their learning styles in order to develop the best curriculum for their success. This will allow my students to feel inclusive within the learning environment.>GET ANSWER