To Exploit an Expected Increase in Interest Rates, an Investor

question 56

Multiple Choice

To exploit an expected increase in interest rates, an investor would most likely

• A) sell Treasury bond futures.
• B) take a long position in wheat futures.
• C) buy S&P 500 Index futures.
• D) take a long position in Treasury bond futures.
• E) None of the options are correct.

---

Definitions:

Partnerships

A legal and strategic arrangement where two or more parties agree to cooperate for mutual benefits.

Personal Income

The total amount of income earned by individuals and households in an economy before taxes and other deductions.

Liability

A financial obligation or debt that an individual or company owes to another entity, which must be settled over time.

Long-term Debt

Borrowings or financial obligations that are due to be repaid over a period longer than one year.