Exploit an expected rise in interest rates

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Reference no: EM132036755

1. An investor would want to __________ to exploit an expected rise in interest rates.

Take a long position in treasury bond futures

Sell treasury bond futures

Buy S&P 500 index futures

Take a short position in oil futures

Take a long position in wheat futures

2. The current level of the S&P 500 is 1,160. The dividend yield on the S&P 500 is 2%. The risk-free interest rate is 3%. The futures price for a contract on the S&P 500 due to expire 6 months from now should be __________ (use the continuously compounding interest rate method).

$1,137.49

$1,165.81

$1,190.00

$1,132.17

$1,075.04

Reference no: EM132036755

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