One strategy for an investor bearish about interest rates is to write a put in the futures options market.

Question

Quizplus · Accepted Answer

A bearish investor about interest rates would more likely buy a put option in the futures market, not write one. Buying a put option allows the investor to profit from a decline in interest rates, as it gives them the right to sell the underlying asset at a set price. Writing a put option would obligate the investor to buy the underlying asset, which is not a strategy typically used by those bearish on interest rates.

One Strategy for an Investor Bearish About Interest Rates Is