Consider the following statement: A speculator who felt that interest rates were likely to rise or a

Question:

Consider the following statement:

A speculator who felt that interest rates were likely to rise or a currency’s value decline would go short in the relevant asset by selling a futures contract.

(a) Why would a speculator go short rather than long in these two cases?

(b) What does going short in interest rates mean?

(c) How does selling a futures contract allow one to go short?

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