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Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of $110,000. Dudley Savings thinks interest rates
Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of $110,000. Dudley Savings thinks interest rates will go down over the period of investment. The face value of the bond underlying the futures contract is $100,000. Should the bank go long or short on the future contracts? Short position Long position
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