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example. Some respondents will attempt to answer questions without being adequately informed, which will affect the validity of the results. Is the respondent able to articulate the response Even if the respondent has the necessary information to answer a question, they may not always be able to articulate their responses successfully. If asked to describe the type of person who might wear a particular fragrance, many respondents would nd dif culty in phrasing their answers. It is easier for the respondent if they are presented with a set of alternatives from which they can choose the response that they feel to be the most appropriate. Using aids such as descriptions and pictures makes it easier for the respondent to answer the questions, and so complete the interview. Asking questions beyond the memory span of the respondent Asking questions about behaviour over a long time span may not produce accurate information. For example, asking the respondent how much they spent on tights in the last year would result in an answer that was pure guesswork. Asking how much they spent on tights in the last fortnight would be more likely to provide accurate information. Question wording Great care must be taken with the wording of questions. This is of particular importance when conducting cross-cultural or international marketing research. Decisions about question wording include:



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Perhaps the firm she works for has internal or external constraints pertaining to the use of options There is a Treasury bill futures market, and the underlying spot Treasury bill tends to have a three-month maturity The futures are generally available in a string of rolling 3-month contracts that can extend beyond a year However, futures on three-month Eurodollar instruments typically will extend well beyond the forward horizon of Treasury bill contracts The price of these futures contracts is calculated as par minus the relevant forward yield of the underlying spot instrument Thus, if the relevant forward yield of the underlying Treasury or Eurodollar spot is 60 percent then the price of the futures contract is 100 6 94.





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A Treasury bill future typically involves a physical settlement if held to expiration (where a physical exchange of cash and Treasury bills takes place), while a Eurodollar future involves a cash settlement (where there is no physical exchange, but simply a last marking-to-market of final positions) While there generally are no meaningful delivery options to speak of with Treasury bill or Eurodollar futures, there is one interesting price characteristic of these securities: Price changes are linked to a fixed predetermined amount Accordingly, each time the forward yield changes by one-half basis point, the value of the futures contract changes by a fixed amount of $1250 (or $25 per basis point) Why $25 per basis point Simple Earlier it was said that the Macaulay duration of a zero coupon security is equal to its maturity The Macaulay duration of an underlying three-month asset is onequarter of a year, or 0.

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