f a bond investor sells a three-year Commonwealth Treasury bond futures contract at 7 per cent and on delivery date the interest rate of Treasury bonds is higher than they expected at 8 per cent, they will have:

Select one:

a. lost money on their short position.

b. gained money on their long position.

c. lost money on their long position.

d. gained money on their short position.

e. Net zero as there is no obligation to settle