Refer to Table 10–4. (LG 10-3)

a. If you think five-year Treasury note prices will fall between August 3, 2016, and December 2016, what type of futures position would you take?

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b. If you think inflation in Japan will increase by more than that in the United States between August 2016 and December 2016, what type of Japanese yen futures position would you take?

c. If you think stock prices will fall between August 2016 and December 2016, what type of position would you take in the December S&P 500 Index futures contract? What happens if stock prices actually rise?

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