In the futures markets,speculators who strongly believe that prices of treasury bonds will fall are likely to:
A) buy futures contracts on Treasury bonds.
B) sell futures contracts on Treasury bonds.
C) sell Treasury bonds on the spot market.
D) decrease the amount of money that they currently lend.

Question

Quizplus · Accepted Answer

Speculators who strongly believe that prices of treasury bonds will fall will sell futures contracts on Treasury bonds. This allows them to profit from the price decrease without actually holding the underlying asset.

In the Futures Markets,speculators Who Strongly Believe That Prices of Treasury