If you buy a long contract on financial futures,you hope interest rates will ________.
A) rise
B) fall
C) not change
D) fluctuate

Question

Quizplus · Accepted Answer

When you buy a long contract on financial futures, you are essentially betting that the price of the underlying asset will increase. In the context of interest rate futures, a rise in prices corresponds to a fall in interest rates, as the value of fixed-income securities (like bonds) increases when interest rates decrease.

If You Buy a Long Contract on Financial Futures,you Hope