Question
A market timer now believes that the economy will soften over the rest of the year as the housing market slump continues, and she also
A market timer now believes that the economy will soften over the rest of the year as the housing market slump continues, and she also believes that foreign investors will start buying U.S. fixed-income securities in the large quantities that they have in the past. One way the timer could take advantage of this forecast is to ________________.
Multiple Choice
a. buy stock-index futures and buy T-bond futures
b. sell T-bond futures and buy stock-index futures
c. buy T-bond futures and sell stock-index futures
d. sell stock-index futures and sell T-bond futures
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