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A German housing corporation is seeking to safeguard itself against rising interest rates. To achieve this, the corporation plans to use futures contracts on 10-year German government bonds. Which position should the corporation take in the futures market to effectively hedge against the risk of increasing interest rates, and what is the reasoning behind this strategy?
A
Take a long position in the futures because rising interest rates lead to rising futures prices.
B
Take a long position in the futures because rising interest rates lead to declining futures prices.
C
Take a short position in the futures because rising interest rates lead to rising futures prices.
D
Take a short position in the futures because rising interest rates lead to declining futures prices.