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Assume today is mid-October 2010. You expect to borrow $1mil by issuing Bank Accepted Bill (BAB) for 90 days in mid-December 2010 (i.e. the borrowing

Assume today is mid-October 2010. You expect to borrow $1mil by issuing Bank Accepted Bill (BAB) for 90 days in mid-December 2010 (i.e. the borrowing period is between mid-December 2010 and mid-March 2011). Fearing that the BAB yield will move against you between now and mid-December 2010, you intend to lock in the borrowing rate by using the BAB futures. You will:

	A.	Short the BAB futures today
	B.	Long BAB today
	C.	Long the BAB futures today
	D.	Short BAB today

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