If you sold a short contract on financial futures, you hope interest rates ________.

Question

Quizplus · Accepted Answer

When you sell a short contract on financial futures, it means you are selling the contract with the expectation that the price of the underlying asset will go down. In the case of financial futures, the underlying asset is typically interest rates. So, if you sell a short contract on financial futures, you hope that interest rates will rise, as this would cause the price of the futures contract to fall, allowing you to buy it back at a lower price and make a profit. Therefore, the best choice is A: rise.

If You Sold a Short Contract on Financial Futures, You