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A Futures Trader Anticipates That Interest Rates Will Rise More

Question 17

Multiple Choice

A futures trader anticipates that interest rates will rise more than what the financial markets expect.He would profit by


A) waiting until the rates rise,then buy a futures contract
B) waiting until the rates rise,then sell a futures contract
C) buy a contract now,and sell it after the rates rise
D) sell a contract now,and buy it back after the rates rise

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