If a Pension Fund Manager Is Afraid Interest Rates May

question 77

Multiple Choice

If a pension fund manager is afraid interest rates may go down on his short-term portfolio of 90-day Treasury bills,he could hedge by going

• A)Long on Treasury bill futures contracts
• B)Short (sell)Treasury bill futures contracts
• C)Long on U.S.dollar contracts
• D)Short (sell)the U.S.dollar contracts

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