Question

To exploit an expected increase in interest rates, an investor would most likely:_______.a. sell Treasury bond futures. b. take a long position in wheat futures.

Answer 1

a. sell Treasury bond futures

Step-by-step explanation:

To exploit an expected increase in interest rates, an investor would most likely sell Treasury bond futures. Since treasury bond prices are inversely related to interest rates, an increase in interest rates will cause a decline in price of treasury bonds. By selling Treasury Bond futures, investor will have short position which will benefit from the increase in interest rates.