You are selling short a futures contract of $110,000 at a price of 115. In doing this, you are agreeing to deliver face value securities for What direction of a bet on interest rates into the future are you taking as a seller short? You are buying a long $100,000 futures contract for 115. In doing so, for you agree to pay face value securities. What direction of a bet on interest rates into the future are you taking as a buyer long?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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P7
You are selling short a futures contract
of $110,000 at a price of 115. In doing
this, you are agreeing to deliver
face value securities for
What direction of a bet on
interest rates into the future are you
taking as a seller short?
You are buying a long $100,000
futures contract for 115. In doing so,
you agree to pay ___
for
face value securities. What
direction of a bet on interest rates into
the future are you taking as a buyer
long?
Show your work and explain your
answers.
Transcribed Image Text:You are selling short a futures contract of $110,000 at a price of 115. In doing this, you are agreeing to deliver face value securities for What direction of a bet on interest rates into the future are you taking as a seller short? You are buying a long $100,000 futures contract for 115. In doing so, you agree to pay ___ for face value securities. What direction of a bet on interest rates into the future are you taking as a buyer long? Show your work and explain your answers.
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