For a firm with an interest liability on a future date, the financial manager were to sell interest rate futures. If interest rates end up going up$,$ the position outcome would be $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Question $2$ options:

futures price goes up and long earns a profit

futures price goes up and long incurs a loss

futures price goes down and long earns a profit

futures price goes down and short incurs a loss

futures price goes up and short earns a profit

futures price goes up and short incurs a loss

futures price goes down and short earns a profit