To exploit an expected decrease in interest rates, an investor would most likely
A)buy Treasury bond futures.
B)take a long position in wheat futures.
C)buy S&P 500 Index futures.
D)take a short position in Treasury bond futures.
E)None of the options

Question

Quizplus · Accepted Answer

If interest rates decrease, bond prices increase.As bond prices increase, the long position gains.Thus, if you are bullish about bond prices, you might speculate by buying T-bond futures contracts.

To Exploit an Expected Decrease in Interest Rates, an Investor