Short-term interest rate futures (STIRs) are:

Standardised, exchange-traded contracts

Not tailored exactly to one company’s needs (that’s FRAs)

Traded on an exchange, so you can close out early by taking an opposite position

If interest rates fall, futures prices rise (since price ≈ 100 – interest rate)

Now check each statement:

A. “Tailored to exact needs” → False (that’s an FRA)

B. “If interest rates go down the price will have fallen” → False (it rises)

C. “Must be kept for whole duration” → False

D. “Date is flexible and the position can be closed quickly and easily” → True (you choose the contract month and can close out any time before expiry)

Answer: D. The date is flexible and the position can be closed quickly and easily.