An investor who anticipates that Treasury bond prices will fall should

Question

Quizplus · Accepted Answer

Selling a bond futures contract allows the investor to profit from the anticipated fall in Treasury bond prices. When the bond prices fall, the value of the futures contract increases, allowing the investor to sell the contract for a higher price than they paid for it. This strategy can be risky and requires careful consideration of market conditions and timing.

An Investor Who Anticipates That Treasury Bond Prices Will Fall