Multiple Choice
A U.S. Treasury bond dealer with a large portfolio who sells a futures contract for U.S. Treasury bonds is:
A) taking on additional risk in hopes of getting a larger return.
B) ensuring the sales price of the bond through hedging.
C) not likely to find a buyer for this transaction.
D) should see the value of the futures contract increase as bond prices rise.
Correct Answer:
Verified
Correct Answer:
Verified
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