lasdivisionst6698 lasdivisionst6698
  • 25-11-2020
  • Business
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To exploit an expected increase in interest rates, an investor would most likely:_______.a. sell Treasury bond futures. b. take a long position in wheat futures.

Respuesta :

Tundexi
Tundexi Tundexi
  • 27-11-2020

Answer:

a. sell Treasury bond futures

Explanation:

To exploit an expected increase in interest rates, an investor would most likely sell Treasury bond futures. Since treasury bond prices are inversely related to interest rates, an increase in interest rates will cause a decline in price of treasury bonds. By selling Treasury Bond futures, investor will have short position which will benefit from the increase in interest rates.

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