5. If speculators believe interest rates will they would consider a T-bill futures contract today. a. increase; selling b. decrease; buying c. increase; buying d. decrease, selling e. A & B f C & D g. decrease: purchasing a call option on 6. Buster Bronco purchased a futures contract at the beginning of the year. If the price of a security represented by a futures contract over the year, then Buster Bronco would likely have purchased the futures contract for than he can sell it for. a. increased: more b. decreased: less c. remains the same; more d. increased; less e, decreased: more f A & B D & E h, this is impossible to determine given the information provided 7. financial institution that maintains some Treasury bond holdings sells Treasury bond futures contracts. Ifinterest rates decrease, the market value of the bond holdings will and the position in futures contracts will result in a. Increase gain b. increases loss c. decrease; gain d. decrease; loss e. not change; gain not change, loss 8. Ifa financial institution expects that the equity markets will decline because of economic conditions, it could best hedge its position by futures contracts on a. purchasing: Treasury bonds