Multiple Choice
A U.S.Treasury bond dealer 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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