If you sell a short futures contract,you hope that bond prices will ________.
A) rise
B) fall
C) not change
D) fluctuate

Question

Quizplus · Accepted Answer

Selling a short futures contract means that you are agreeing to sell the underlying asset (in this case, bonds) at a future date for a specific price. If the price of bonds falls, you can buy them at a lower price and make a profit on the difference when fulfilling the futures contract. Therefore, by selling a short futures contract, you hope that bond prices will fall.

If You Sell a Short Futures Contract,you Hope That Bond