Multiple Choice
Suppose that an investor disagrees with market expectations and feels that the forward rate prevailing in the market is higher than what it should be, then the investor can make profit by:
A) selling a bond now and buying it up later.
B) selling a bond now.
C) buying a bond now.
D) buying a bond now and selling it later.
Correct Answer:
Verified
Correct Answer:
Verified
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