Tom Buys a Futures Contract for U

question 92

Multiple Choice

Tom buys a futures contract for U.S.Treasury bonds and on the settlement date the interest rate on U.S.Treasury bonds is higher than Tom expected.Tom will have:

• A)Gained money on his short position.
• B)Lost money on his long position.
• C)Gained money on his long position.
• D)Lost money on his short position.