USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Assume that you observe the following prices in the T-Bill and Eurodollar futures markets

-Refer to Exhibit 15.6. If you expected the spread to narrow over the next month, then an appropriate strategy would be to
A) go long T-Bill futures and long Eurodollar futures.
B) go short T-Bill futures and short Eurodollar futures.
C) go long T-Bill futures and short Eurodollar futures.
D) go short T-Bill futures and long Eurodollar futures.
E) None of these are correct.

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Assume that you observe the following prices in the T-Bill and Eurodollar futures markets
 
-Refer to Exhibit 15.6. If you expected the spread to narrow over the next month, then an appropriate strategy would be to
A) go long T-Bill futures and long Eurodollar futures. 
B) go short T-Bill futures and short Eurodollar futures. 
C) go long T-Bill futures and short Eurodollar futures. 
D) go short T-Bill futures and long Eurodollar futures. 
E) None of these are correct.

Quizplus · Accepted Answer

The Answer of USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Assume that you observe the following prices in the T-Bill and Eurodollar futures markets
 
-Refer to Exhibit 15.6. If you expected the spread to narrow over the next month, then an appropriate strategy would be to
A) go long T-Bill futures and long Eurodollar futures. 
B) go short T-Bill futures and short Eurodollar futures. 
C) go long T-Bill futures and short Eurodollar futures. 
D) go short T-Bill futures and long Eurodollar futures. 
E) None of these are correct.