Buying a September bank bill futures contract and simultaneously selling a June Commonwealth Treasury bond futures contract is a/an:

Question

Quizplus · Accepted Answer

This is an example of a spread, which involves buying one futures contract and selling another with the intention of profiting from the difference in prices between the two contracts. It is not a typical trading strategy for a hedger or arbitrageur, nor is it a straddle.

Buying a September Bank Bill Futures Contract and Simultaneously Selling