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.
C)buy S&P 500 Index futures.
D)take a long position in Treasury bond futures.
E)None of the options

Question

Quizplus · Accepted Answer

If interest rates rise, bond prices decrease.As bond prices decrease, the short position gains.Thus, if you are bearish about bond prices, you might speculate by selling T-bond futures contracts.

To Exploit an Expected Increase in Interest Rates, an Investor