If an Investor Buys a Three-Year Commonwealth Treasury Bond Futures

Multiple Choice

If an investor buys a three-year Commonwealth Treasury bond futures contract at 6 per cent and on the delivery date the interest rate of Treasury bonds is lower than they expected at 7 per cent,they will have:

A) gained money on their long position.
B) lost money on their long position.
C) lost money on their short position.
D) gained money on their short position.