Answer: buy a forward contract.

When an investor believes future spot rates will be below the forward rates implied by the current yield curve, they should **buy a forward contract**. This is because: - Forward rates represent the market's expectation of future spot rates - If actual future spot rates turn out to be lower than forward rates, the investor benefits from locking in the higher forward rate - Buying a forward contract allows the investor to profit from this discrepancy For example, if the 1-year forward rate is 5% but the investor believes the actual 1-year spot rate will be 4%, they can lock in the 5% rate by buying a forward contract.

Author: LeetQuiz Editorial Team