Question
How Futures Prices May Respond to Prevailing Conditions. Consider the prevailing conditions for inflation (including oil prices), the economy, the budget deficit, and other conditions
How Futures Prices May Respond to Prevailing Conditions.
Consider the prevailing conditions for inflation (including oil prices), the economy, the budget deficit, and other conditions that could affect the values of futures contracts. Based on these conditions, would you prefer to buy or sell Treasury bond futures at this time? Would you prefer to buy or sell stock index futures at this time? Assume that you would close out your position at the end of this semester. Offer some logic to support your answers. Which factor is most influential on your decision regarding Treasury bond futures and on your decision regarding stock index futures?
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