As time has passed since your initial economic forecast, the economy has rebounded and youve become concerned about a significant increase in intermediate-term interest rates in the next few months. Corporate profits have also improved and you believe it is a good time to add credit exposure to your portfolio.

Indicate below how each type of derivative could be used to protect the portfolio against interest rate risk while taking advantage of the profit opportunity of corporate bond spreads narrowing.

Group of answer choices

Treasury futures

[ Choose ] Neither Long or Short Short Long

Eurodollar futures

[ Choose ] Neither Long or Short Short Long

Interest rate swaps

[ Choose ] Neither Long or Short Short Long

Credit default swaps

[ Choose ] Neither Long or Short Short Long