A _____ Position in T-Bond Futures Should Be Used to Hedge

question 29

Multiple Choice

A _____ position in T-bond futures should be used to hedge falling interest rates and a _____ position in T-bond futures should be used to hedge falling bond prices.

• A)long; short
• B)long; long
• C)short; long
• D)short; short

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Definitions:

Cooperative Interaction

Collaboration or joint effort among individuals or groups working together towards a common goal or objective.

Trust

Trust refers to the belief in the reliability, truth, ability, or strength of someone or something, forming the basis for cooperative human relationships.

Emotion

A complex psychological state that involves an experiential, physiological, and behavioral response to a personally significant matter.

Envy

A feeling of discontent or covetousness with regard to another's advantages, success, or possessions.