If a financial manager wishes to protect against an interest rate drop, he can go long in the futures market.

Name: If a financial manager wishes to protect against an interest rate drop, he can go long in the futures market.
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His strategy might be to buy (go long on) a Treasury bill futures contract. If interest rates go down, he will make a profit on his futures contract that will partially or fully offset his decline in interest income for one period.

If a Financial Manager Wishes to Protect Against an Interest