There are three advantages of using interest rate futures instead of the cash market (trading long-term Treasuries themselves). One of these advantages is that ________.

Question

Quizplus · Accepted Answer

It is easier to take a short position in the futures market than to sell short in the Treasuries market. The other options given in the question are incorrect as A is false, and B is opposite to the actual advantage of using futures (margin requirements are lower for futures than for Treasury securities, using futures thus permits more leverage).

There Are Three Advantages of Using Interest Rate Futures Instead