Speculators Who Anticipate a Decline in Interest Rates May Consider

question 57

Multiple Choice

Speculators who anticipate a decline in interest rates may consider ____ a ____ option on Treasury bond futures.

• A) purchasing; put
• B) selling; call
• C) purchasing; call
• D) none of the above

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Definitions:

Principal Investment

An original amount of money invested, excluding any earnings or losses.

Real Assets

Real assets are physical or tangible assets such as land, buildings, and commodities that have intrinsic value.

Total Asset Holdings

The complete array of assets owned by an individual or entity, including cash, stocks, bonds, property, and more.

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, facilitating the flow of funds in the financial system.