A Long Position in an Interest Rate Call Would Be

question 32

Multiple Choice

A long position in an interest rate call would be appropriate for which of the following situations:

• A)a bond trader expects falling interest rates
• B)a party holding a short position in Eurodollar futures is concerned about losing money
• C)a borrower expects rising interest rates
• D)a lender expects rising interest rates
• E)a derivatives dealer is exposed to the risk of falling interest rates

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Definitions:

Romantic Love

A deep emotional, affectionate, and sexual attraction and attachment between partners, often characterized by passion and commitment.

Volatile

Exhibiting or subject to rapid or unexpected changes, often used to describe chemical substances or emotional states.

Attachment Style

Describes patterns of attachment behavior that result from the early bonds formed between children and their caregivers, affecting individual relationships throughout life.

Cognitive

Relating to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.