Multiple Choice
An insurance company expects to receive a large payment in three months. When the payment is received, it will be invested in short-term securities. It can hedge against a change in interest rates if it:
A) Buys Treasury bond futures contracts
B) Sells Treasury bond futures contracts
C) Buys Treasury bill futures contracts
D) Sells Treasury bill futures contracts
E) Buys stock index futures contracts
Correct Answer:
Verified
Correct Answer:
Verified
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