An investor would want to __________ to exploit an expected fall in interest rates.
A) sell S&P 500 index futures
B) sell treasury bond futures
C) buy treasury bond futures
D) buy wheat futures

Question

Quizplus · Accepted Answer

Buying treasury bond futures allows an investor to profit from a fall in interest rates since the price of the bond goes up as interest rates drop. Selling S&P 500 index futures or wheat futures would not be directly impacted by changes in interest rates, while selling treasury bond futures would result in losses if interest rates fall.

An Investor Would Want to __________ to Exploit an Expected